Hartley uniforms produces uniforms.
produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.
Hartley UniformsHartley Uniforms
reports the following cost data for the past year:
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(Click the icon to view the cost data.)Read the requirements
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.
Requirement 1. Compute the predetermined manufacturing overhead rate.
Enter the formula for predetermined manufacturing overhead rate, then compute the rate.
|
Estimated yearly overhead costs |
/ |
Estimated yearly machine hours |
= |
Predetermined overhead rate |
||
|
$194,400 |
/ |
7,200 |
= |
$27 |
per machine hour |
Requirement 2. Calculate the allocated manufacturing overhead for the past year.
|
Manufacturing |
|||||||
|
Actual machine hours |
x |
Predetermined overhead rate |
= |
overhead allocated |
|||
|
6,300 |
x |
$27 |
= |
$170,100 |
Requirement 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of?
First calculate the preliminary manufacturing overhead balance using the T-account.
|
Manufacturing Overhead |
|||||
|
Actual indirect materials |
50,500 |
Manufacturing overhead allocated |
170,100 |
||
|
Actual indirect manufacturing labor |
42,000 |
||||
|
Actual depreciation on plant and equipment |
72,500 |
||||
|
Actual plant utilities |
38,400 |
||||
|
End Bal |
33,300 |
||||
Close the under- or overallocated overhead to Cost of Goods Sold by journalizing the entry. (Record debits first, then credits. Exclude explanations from any journal entries.)
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Journal Entry |
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Date |
Accounts |
Debit |
Credit |
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DATA TABLE
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In: Accounting
Create the general journals for these transactions:
| 6 | June 6 | Paid $12,000 wages owed to employees for work conducted in May. |
| 7 | June 7 | Received a $5,000 rent payment for the full month of June (again tenants were late and should have paid on June 1). |
| 8 | June 8 | Purchased property C with $220,000 cash. |
| 9 | June 9 | Received $6,000 cash for consulting conducted in May. |
| 10 | June 10 | Paid $500 for utilities that were invoiced in, and expensed in, May. |
| 11 | June 11 | You have secured an advertising billboard over the freeway. The design of the billboard costs $1,000 (which you pay today), and the monthly advertising fee will be $4000 (payable monthly - and only recognized at end of each month). You will receive the advertising in June for free as part of the contract promotion. |
| 12 | June 12 | You made an agreement with a web-developer to have your website redesigned. The cost will be $3000 and will be completed in August, payable on completion. |
| 13 | June 13 | You performed real estate consulting services this week and invoiced the client $14,000. |
| 14 | June 14 | Paid a $7,000 invoice for legal fees incurred on May 27. |
| 15 | June 15 | You purchased, with cash, a new $55,000 SUV to get you around town (previously you walked or used public transport). The expense associated with this automobile will be recognized each year for five years, beginning after one year of the asset's life. (Account name AUTOMOBILES) |
| 16 | June 16 | Received $5,000 cash today for the rental of your function hall associated with Property B for rental today June 16. |
| 17 | June 17 | Purchased property D with $160,000 cash. |
| 18 | June 18 | Purchased $1,000 office supplies for cash. |
| 19 | June 19 | Purchased property E with $80,000 cash. |
| 20 | June 20 | Received a $4,000 rent payment for the month of July. |
| 21 | June 21 | Purchased a $350,000 building with $100,000 cash and a note to the seller for the remainder. The building is to be used as your office (i.e. you will not rent this). This will be recorded under PPE. |
| 22 | June 22 | Paid $18,000 rent for a temporary office for July and August until your new building is ready (your parents kicked you (i.e. your office) out of their garage as they also bought a new car) |
| 23 | June 23 | Congratulations! The Boston Real Estate Society awarded your company a $10,000 cash prize for excellence in services to the profession. We will need to include this as revenue. (For the purposes of this activity, let’s account for it as miscellaneous revenue) |
| 24 | June 24 | Received a $7,000 payment for a consulting job that will be performed in July. |
| 25 | June 25 | Purchased property F with $155,000 cash. |
| 26 | June 26 | Received a $7,500 rent payment for the month of July. |
| 27 | June 27 | Performed $2,000 consulting services today and will prepare and send the invoice this week. |
| 28 | June 28 | Received a $6,000 rent payment for the month of July. |
| 29 | June 29 |
Paid your monthly $5,000 radio advertising subscription for July advertising (which unfortunately increased to $5000 from $4500) |
| 30 | June 30 | Prepaid the $4,000 billboard advertising for the month of July. |
| Adjusting Entries | ||
| 31 | June 30 | Recognize the June radio advertising incurred ($4,500). |
| 32 | June 30 | Recognize your June TV advertising incurerd ($2,000) which you have not yet paid for. |
| 33 | June 30 | Recognize the interest incurred on the note from transaction 2 for June, to be paid in July. |
| 34 | June 30 | Recognize $20,000 of wages owed for June, that will be paid to employees early July. |
| 35 | June 30 | Recognize the entire yearly depreciation on your computer equipment of $3,000. |
| 36 | June 30 | Recognize the $15,000 rent revenue for June ($10,000 of which was prepaid in May). |
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Closing Statement Problem Answer the following
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negotiated the sale as a real estate broker and are entitled to a
six percent commission The offer and acceptance contract calls for
a sales price of $200,000. The buyer has tendered $2,000 for
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how much is the total real estate commission paid by the seller?
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