Log in
Accounting
1
answer
0
watching
123
views

AmaZing company has its job-costing system including twocategories of direct costs: direct materials and directmanufacturing labor and one indirect-cost pool. Manufacturingoverhead allocated at a budgeted $31 per machine-hour in 2016. Thefollowing data (in thousands) show operating costs for 2016.

Materials control, Jan 1,2016 20

WIP Control, Jan 1,2016 9

Finished Goods Control, Jan 1,2016 10

Finished Goods Control, Dec 31,2016 11

Materials and Supplies purchased oncredit 154

Direct materialsused 145

Indirect materials issued to various productiondepartments 19

Direct manufacturinglabor 100

Indirect manufacturing labor by various productiondepartments 43

Depreciation on plant 28

Miscellaneous manufacturing overhead(utilities..) 13

Cost of goodssold 294

Manufacturing overhead allocated 3,000 machine-hours

1. Calculate Materials control on Dec 31,2016

2. Prepare journal entries. What is the cost of goodsmanufactured?

3. Calculate the amount of under- or overallocated manufacturingoverhead

Watch
1
answer
0
watching
123
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Nelly Stracke
Nelly StrackeLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Lakeland Industries assembles prestige manufactured homes. Itsjob costing system has two direct-cost categories (direct materialsand direct manufacturing labor) and one indirect-cost pool(manufacturing overhead allocated at a budgeted $30 permachine-hour in 2009). The following data (in millions) pertain tooperations for 2009:

Materials Control, beginning balance, January 1,2009 $12

Work-In-Process Control, beginning balance, January, 1,2009 2

Finished Goods Control, beginning balance, January 1,2009 6

Materials and supplies purchased oncredit 150

Direct materialsused 145

Indirect materials (supplies) issued to various productiondepts. 10

Direct manufacturing labor 90

Indirect manufacturing labor incurred by various productionsdepts. 30

Depreciation on plant and manufacturingequipment 19

Miscellaneous manufacturing overhead incurred (ordinarily wouldbe

Detailed as repairs, utilities, etc., with a correspondingcredit to

Various liabilityaccounts) 9

Manufacturing overhead allocated, 2,100,000 actualmachine-hours ?

Cost of goodsmanufactured 294

Revenues 400

Cost of goodssold 292

Required

Prepare journal entries. Number your entries. Post toT-accounts. What is the ending balance of Work-In-ProcessControl?

Show the journal entry for disposing of under or overallocatedmanufacturing overhead directly as a year-end write off to Cost ofGoods Sold. Post the entry to

T-accounts.

Using the below financial statements, determine certainnumber of variable costs and a fixed costs for the month of Dec.2016 and calculate the following:

Breakeven point in units

Breakeven point in $S

Assume a target income and determine how many units you need tosell in order to make your target income.

LINDSEY’S LIP SETS

Schedule of Cost of Goods Manufactured

For the Year Ending December 31, 2016

Direct Materials:

Beginning Raw Materials Inventory, Jan. 1

$100,000

Plus: Net purchases of raw material

$200,000

Raw materials available

$300,000

Less: Ending raw materials inventory, Dec. 31

$150,000

Raw materials transferred to production

$150,000

Direct Labor

$200,000

Manufacturing Overhead

Indirect materials

$10,000

Indirectlabor

$45,000

FactoryDepreciation

$10,000

$65,000

Total manufacturing costs

$415,000

Beginning work in process inventory Jan.1

$50,000

Cost of goods manufactured

$530,000

Less: Ending work in process inventory, Dec. 31

$2,000

Cost of goods manufactured

$528,000

LINDSEY’S LIP SETS

Schedule of Cost of Goods Sold

For the Year Ending December 31 2016

Beginning finished goods inventory, Jan. 1

$20,000

Plus: Cost of goods manufactured

$528,000

Goods available forsale

$548,000

Less: Finished goods inventory, Dec. 31

$10,000

Cost of goodssold

$538,000

LINDSEY’S LIP SETS

Income Statement

For the Year Ending December 31 2016

Sales

$3,200,000

Cost of goods sold

$538,000

Gross profit

$2,662,000

Operating expenses

Online shop selling

$24,000

General administrative

$10,000

$34,000

Net income

$2,628,000

Lott Company uses a job order cost system and applies overheadto production on the basis of direct labor costs. On January 1,2017, Job No. 50 was the only job in process. The costs incurredprior to January 1 on this job were as follows: direct materials $22,400 , direct labor $ 13,440 , and manufacturing overhead $17,920 . As of January 1, Job No. 49 had been completed at a costof $ 100,800 and was part of finished goods inventory. There was a$ 16,800 balance in the Raw Materials Inventory account. During themonth of January, Lott Company began production on Jobs 51 and 52,and completed Jobs 50 and 51. Jobs 49 and 50 were also sold onaccount during the month for $ 136,640 and $ 176,960 ,respectively. The following additional events occurred during themonth. 1. Purchased additional raw materials of $ 100,800 onaccount. 2. Incurred factory labor costs of $ 78,400 . Of thisamount $ 17,920 related to employer payroll taxes. 3. Incurredmanufacturing overhead costs as follows: indirect materials $19,040 ; indirect labor $ 22,400 ; depreciation expense onequipment $ 13,440 ; and various other manufacturing overhead costson account $ 17,920 . 4. Assigned direct materials and direct laborto jobs as follows. Job No. Direct Materials Direct Labor 50 $11,200 $ 5,600 51 43,680 28,000 52 33,600 22,400 Calculate thepredetermined overhead rate for 2017, assuming Lott Companyestimates total manufacturing overhead costs of $940,800, directlabor costs of $784,000, and direct labor hours of 22,400 for theyear. (Round answer to the nearest whole percent, e.g. 25%.)Predetermined overhead rate % Open job cost sheets for Jobs 50, 51,and 52. Enter the January 1 balances on the job cost sheet for JobNo. 50. Job No. 50 Date Direct Materials Direct Labor ManufacturingOverhead Beg. $ $ $ Jan. $ $ $ Cost of completed job Directmaterials $ Direct labor Manufacturing overhead Total cost $ JobNo. 51 Date Direct Materials Direct Labor Manufacturing OverheadJan. $ $ $ $ $ $ Cost of completed job Direct materials $ Directlabor Manufacturing overhead Total cost $ Job No. 52 Date DirectMaterials Direct Labor Manufacturing Overhead Jan. $ $ $ Preparethe journal entries to record the purchase of raw materials, thefactory labor costs incurred, and the manufacturing overhead costsincurred during the month of January. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in (a). (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Total the job cost sheets for any job(s) completed during themonth. Prepare the journal entry to record the completion of anyjob(s) during the month. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.) AccountTitles and Explanation Debit Credit Prepare the journal entries torecord the sale of any job(s) during the month. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually.) No. Account Titles and Explanation Debit Credit(1) (To record sale of jobs) (2) (To record cost of jobs) What isthe balance in the Finished Goods Inventory account at the end ofthe month? What does this balance consist of? Finished GoodsInventory $ What is the amount of over- or underapplied overhead?Manufacturing Overhead $ Question Attempts: 0 of 15 used Save forlater Submit Answer

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in