Question
In: Accounting
Use the following information to answer questions . Allen Company applies manufacturing overhead on the basis...
Use the following information to answer questions .
Allen Company applies manufacturing overhead on the basis of
direct labor hours. Overhead was estimated to be $500,000 and
direct labor hours were estimated to be 20,000.
During the year, Allen Company incurred actual overhead costs
of $510,000, actual direct labor hours of 21,000, and actual direct
labor costs of $615,000.
Allen Company had the following inventory balances at the
beginning and end of the year:
January 1 December 31
Finished goods $315,000 $325,000
Work in process 450,000 470,000
Raw material 320,000 325,000
During the year, the company purchased $230,000 of raw
materials.
1. The journal entry to transfer costs from work in process to
finished goods includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
2. The journal entry to transfer costs from work in process to
finished goods includes a credit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
3. Refer to the previous two questions. The amount of the
entry is:
4. The journal entry to transfer costs from finished goods to
cost of goods sold includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
5. The journal entry to transfer costs from finished goods to
cost of goods sold includes a credit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
6. Refer to the previous two questions. The amount of the
entry is:
7. The journal entry to dispose of over- or under- applied
manufacturing overhead includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
8. The journal entry to dispose of over- or under- applied
manufacturing overhead includes a credit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
9. Refer to the previous two questions. The amount of the
entry is:
10. State the information need to calculate net income.
Solutions
Expert Solution
Answer to Question 1:
Workings for Question 3:
Answer to Question 3 and 4:
ekkarill92 answered 1 year agoRelated Solutions
Use the following information to answer questions . Allen Company applies manufacturing overhead on the basis...
Use the following information to answer questions .
Allen Company applies manufacturing overhead on the basis of
direct labor hours. Overhead was estimated to be $500,000 and
direct labor hours were estimated to be 20,000.
During the year, Allen Company incurred actual overhead costs
of $510,000, actual direct labor hours of 21,000, and actual direct
labor costs of $615,000.
Allen Company had the following inventory balances at the
beginning and end of the year:
January 1 December 31
Finished goods...
Use the following information to answer questions 5 – 21 . Allen Company applies manufacturing overhead...
Use
the following information to answer questions 5 – 21 .
Allen Company applies manufacturing overhead on the basis of
direct labor hours. Overhead was estimated to be $500,000 and
direct labor hours were estimated to be 20,000.
During the year, Allen Company incurred actual overhead costs
of $510,000, actual direct labor hours of 21,000, and actual direct
labor costs of $615,000.
Allen Company had the following inventory balances at the
beginning and end of the year:
January 1 December...
Required information Use the following information to answer questions [The following information applies to the questions...
Required information
Use the following information to answer questions
[The following information applies to the questions
displayed below.]
The following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system.
April 30
May 31
Inventories
Raw materials
$
31,000
$
30,000
Work in process
9,500
18,200
Finished goods
54,000
34,000
Activities and information for
May
Raw materials purchases (paid
with cash)
197,000
Factory payroll (paid with
cash)
200,000
Factory overhead
Indirect materials...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following
information applies to the questions displayed below.] The
following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system. April 30 May 31 Inventories Raw materials $ 48,000
$ 48,000 Work in process 9,900 19,700 Finished goods 67,000 33,700
Activities and information for May Raw materials purchases (paid
with cash) 194,000 Factory payroll (paid with cash) 150,000 Factory
overhead Indirect materials 14,000 Indirect...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions
[The following information applies to the questions
displayed below.]
The following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system.
April 30
May 31
Inventories
Raw materials
$
44,000
$
54,000
Work in process
9,500
18,800
Finished goods
59,000
34,000
Activities and information for May
Raw materials purchases (paid with cash)
185,000
Factory payroll (paid with cash)
250,000
Factory overhead
Indirect materials
10,000
Indirect...
Use the following information to answer questions 12-13 [The following information applies to the questions displayed...
Use the following information to answer questions 12-13
[The following information applies to the questions
displayed below.]
On May 1, Donovan Company reported the following account
balances:
Current assets
$
130,000
Buildings & equipment
(net)
260,000
Total assets
$
390,000
Liabilities
$
98,500
Common stock
150,000
Retained earnings
141,500
Total liabilities and
equities
$
390,000
On May 1, Beasley paid $465,200 in stock (fair value) for all of
the assets and liabilities of Donovan, which will cease to exist as...
Use the following information to answer questions 7-11 [The following information applies to the questions displayed...
Use the following information to answer questions 7-11
[The following information applies to the questions
displayed below.]
The following information is available for Lock-Tite Company,
which produces special-order security products and uses a job order
costing system.
April 30
May 31
Inventories
Raw materials
$
33,000
$
58,000
Work in process
9,600
18,200
Finished goods
59,000
33,400
Activities and information for May
Raw materials purchases (paid
with cash)
174,000
Factory payroll (paid with
cash)
330,000
Factory overhead
Indirect
materials...
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs...
Ikerd Company applies manufacturing overhead to jobs on the
basis of machine hours used. Overhead costs are expected to total
$300,000 for the year, and machine usage is estimated at 125,000
hours. For the year, $322,000 of overhead costs are incurred and
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decimal places, e.g. 1.25.) Manufacturing overhead rate $ per
machine hour
Ikea Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs...
Ikea Company applies manufacturing overhead to jobs on the basis
of machine hours used.
Overhead costs are expected to total $456,789 4 for the year,
and machine usage is estimated at 126,000 hours
For the year, $432450 of overhead costs are incurred and 125,500
hours are used.
What is the predetermined overhead rate
What is the amount of overhead applied
Has it been over or underapplied?
Prepare the adjusting entry to adjust the cost of goods sold
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs...
Ikerd Company applies manufacturing overhead to jobs on the
basis of machine hours used. Overhead costs are estimated to total
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hours.
For the year, $303,850 of overhead costs are incurred and 130,200
hours are used.
Compute the manufacturing overhead rate for the year.
(Round answer to 2 decimal places, e.g.
1.25.)
Manufacturing overhead
rate
$
per machine hour
What is the amount of under- or overapplied overhead at December...
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