In: Accounting
I will rate answers these short questions any incomplete will be reoprted thanks
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Entries for Materials
GenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
Fabric | $30,800 |
Polyester filling | 9,200 |
Lumber | 69,000 |
Glue | 3,000 |
The materials purchased during June are summarized from the receiving reports as follows:
Fabric | $152,800 |
Polyester filling | 212,400 |
Lumber | 418,700 |
Glue | 14,500 |
Materials were requisitioned to individual jobs as follows:
Fabric | Polyester Filling | Lumber | Glue | Total | ||||||
Job 601 | $55,000 | $69,300 | $185,400 | $309,700 | ||||||
Job 602 | 42,400 | 75,400 | 162,300 | 280,100 | ||||||
Job 603 | 39,100 | 51,200 | 90,200 | 180,500 | ||||||
Factory overhead-indirect materials | $7,200 | 7,200 | ||||||||
Total | $136,500 | $195,900 | $437,900 | $7,200 | $777,500 |
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a. Journalize the entry to record the purchase of materials in June.
a. | Materials | ||
Accounts Payable |
b. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank.
b. | Work in Process | ||
Factory Overhead | |||
Materials |
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
Fabric | Polyester Filling | Lumber | Glue | |
Balance, June 30 | $ | $ | $ | $ |
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Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:
Job 201 | $3,610 |
Job 202 | 1,800 |
Job 203 | 1,420 |
Job 204 | 2,660 |
Factory supervision | 1,230 |
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $13 per hour.
If required, round final answers to the nearest dollar.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to apply factory overhead to production for November.
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Predetermined Factory Overhead Rate
Poehling Medical Center has a single operating room that is
used by local physicians to perform surgical procedures. The cost
of using the operating room is accumulated by each patient
procedure and includes the direct materials costs (drugs and
medical devices), physician surgical time, and operating room
overhead. On January 1 of the current year, the annual operating
room overhead is estimated to be:
Disposable supplies | $367,200 | |
Depreciation expense | 66,200 | |
Utilities | 38,500 | |
Nurse salaries | 551,400 | |
Technician wages | 180,700 | |
Total operating room overhead | $1,204,000 |
The overhead costs will be assigned to procedures based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs.
a. Calculate the estimated number of operating room hours for the year.
b. Determine the predetermined operating room
overhead rate for the year.
$ per hour
c. Bill Harris had a 4-hour procedure on
January 22. How much operating room overhead would be charged to
her procedure, using the rate determined in part (b)?
$
d. During January, the operating room was used
194 hours. The actual overhead costs incurred for January were
$81,600. Determine the overapplied operating overhead or
underapplied operating overhead for the period. Enter your answer
as a positive number.
$
a. Material Purchased in June |
||||
Fabric |
$152,800 |
|||
Polyester filling |
212,400 |
|||
Lumber |
418,700 |
|||
Glue |
14,500 |
|||
Total |
$798,400 |
|||
Journal Entry |
||||
Debit |
Credit |
|||
Materials |
$798,400 |
|||
Accounts Payable |
$798,400 |
|||
b. |
||||
As per the schedule regarding material requisitioned |
||||
Journal Entry |
||||
Debit |
Credit |
|||
Work in Progress |
$777,500 |
|||
Factory Overhead |
||||
Materials |
$777,500 |
|||
c. Balances as on June 30 |
||||
Fabric |
Polyester filling |
Lumber |
Glue |
|
Balance as on June 1 |
$ 30,800 |
$ 9,200 |
$ 69,000 |
$ 3,000 |
Materials purchased during June |
$ 152,800 |
$ 212,400 |
$ 418,700 |
$ 14,500 |
$183,600 |
$221,600 |
$487,700 |
$17,500 |
|
Less: Material requisitioned |
$136,500 |
$195,900 |
$437,900 |
$7,200 |
Balances as on June 30 |
$47,100 |
$25,700 |
$49,800 |
$10,300 |