Overhead application: Working backward
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:
Division A Division B
Actual machine hours 22,500 ?
Estimated machine hours 20,000 ?
Overhead application rate $4.50 $5.00
Actual overhead $110,000 ?
Estimated overhead ? $90,000
Applied overhead ? $86,000
Over- (under-) applied overhead ? $6,500
Find the unknowns for each of the divisions.
Click here for the solution: (Overhead application: Working backward) The Towson Manufacturing Corporation applies overhead on the basis of machine hours
Showing posts with label Machine Hours. Show all posts
Showing posts with label Machine Hours. Show all posts
Wednesday, July 8, 2015
Saturday, June 27, 2015
Godwin Fixtures Co. uses a job order cost system
Problem 19-2A (Pr19-2A) Godwin Fixtures Co. uses a job order cost
system. The following data summarize the operations related to
production for April 2008, the first mouth of operations:
a.) Materials purchased on account, $137,000.
b.) Materials requisitioned and factory labor used:
Job Materials Factory
No.601 $ 18,100 $17,000
No.602 20,000 25,500
No.603 13,050 9,700
No.604 34,500 33,550
No.605 15,700 14,800
No.606 17,800 18,300
For general factory use 6,600 47,000
c.) Factory overhead cost incurred on account, $4,950.
b.) Depreciation of machinery and equipment, $3,700.
c.) The factory overhead rate is $53 per machine hour. Machine hours used:
Job Machine Hours
No.601 215
No.602 230
No.603 175
No,604 300
N0.605 198
No.606 225
TOTAL 1,343
f.) Jobs completed: 601,602,603and 605.
g.) Jobs were shipped and customers were billed as fallows: Job 601,$72,750;Job 602,$88,780;Job 605,$74,500.
Instructions:
1.) Journalize the entries to record the summarized operations.
2.) Post the appropriate entries to t accounts for work in process and finished goods, using the identifying letters as dates. Insert memorandum account balances as of the end of the month.
3.) Prepare a schedule of unfinished jobs to support the balance in work in process account.
4.) Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Click here for the solution: Godwin Fixtures Co. uses a job order cost system
a.) Materials purchased on account, $137,000.
b.) Materials requisitioned and factory labor used:
Job Materials Factory
No.601 $ 18,100 $17,000
No.602 20,000 25,500
No.603 13,050 9,700
No.604 34,500 33,550
No.605 15,700 14,800
No.606 17,800 18,300
For general factory use 6,600 47,000
c.) Factory overhead cost incurred on account, $4,950.
b.) Depreciation of machinery and equipment, $3,700.
c.) The factory overhead rate is $53 per machine hour. Machine hours used:
Job Machine Hours
No.601 215
No.602 230
No.603 175
No,604 300
N0.605 198
No.606 225
TOTAL 1,343
f.) Jobs completed: 601,602,603and 605.
g.) Jobs were shipped and customers were billed as fallows: Job 601,$72,750;Job 602,$88,780;Job 605,$74,500.
Instructions:
1.) Journalize the entries to record the summarized operations.
2.) Post the appropriate entries to t accounts for work in process and finished goods, using the identifying letters as dates. Insert memorandum account balances as of the end of the month.
3.) Prepare a schedule of unfinished jobs to support the balance in work in process account.
4.) Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Click here for the solution: Godwin Fixtures Co. uses a job order cost system
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