Cashback Offer (1st - 15th August, 2020). Get Flat 10% Cashback credited in your account on minimum transaction of $50. Post Your Question

Question DetailsNormal
$ 20.00

ACCOUNTING hHOMEWORK

Question posted by
request

The decision was made to use a process costing system. The first month of operation went fairly smoothly, and the CFO is ready to prepare her journal entries but asked for your help because she has not done this before for a manufacturing company.

Data for month ending 1/31/200X

Direct labor expended on jobs completed in month 1

$100,000

Direct material used up

$500,000

Budgeted manufacturing overhead

$2,000,000

Budgeted production volume

4,000 units

Actual production volume

4,500 units

Supplies, indirect labor, maintenance repair costs totaled

$2,200,000

Beginning work in process inventory

0

Ending work in process inventory

0

Individual Portion:

Using only the data in the chart, prepare the proper journal entries—including a date and notes showing any calculations—to record the following:

  • Labor
  • Direct material going into the work in progress (WIP) account
  • Manufacturing overhead all being credited to accounts payable

Please add your file.

Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric.

Group Portion:

You, the CFO, and the rest of the accounting department now need to write a memo summarizing the data from the first month of using the process costing system operation.

Using only the data above, prepare a 300–400-word memo addressing all of these questions and showing all calculations:

  • Why is calculating the predetermined overhead rate so important?
  • Compute the firm's predetermined overhead rate.
  • What would it mean if you mistakenly used too high a predetermined rate? What would it mean if you mistakenly used too low a predetermined rate?
  • Compute the proper amount of overhead to apply.
  • Compute the over- or under applied overhead.
  • Prepare the journal entries to record the closing-out of the balance in manufacturing overhead to the appropriate accounts, and show any necessary calculations in the notes of the journal entry.
Available Answer
$ 20.00

[Solved] ACCOUNTING hHOMEWORK

  • This solution has not purchased yet.
  • Submitted On 01 Nov, 2015 10:29:08
Answer posted by
solution
The decision was made to use a process costing system. The first month of operation went fairly smoothly, and the CFO is ready to prepare her journal entries but asked for your help because she has not done this before for a manufacturing company. Data for month ending 1/31/200X Direct labor expended on jobs completed in month 1 $100,000 Direct material used up $500,000 Budgeted manufacturing overhead $2,000,000 Budgeted production volume 4,000 units Actual production volume ...
Buy now to view full solution.
Other Related Questions
User Profile
samaze

ACCT 402 Account

Hi Taka, Attached is the solution to your Accounting Problem, conclusively done. Thank you....
User Profile
Acade...

Business Accounting

Exercise 3-9A Recording receivables and identifying their effect on financial statements Davos Company performed services on account for $160,000 in 2016. Davos collected $120,000 cash from accounts receivable during 2016, ...
User Profile
Guard...

UMUC ACC 220 ACCOUNTING EXAM | COMPLETE SOLUTION

Question 7: When the stockholders invest cash in the business, what is the effect?
a    Liabilities increase and stockholders’ equity increases
b    Both assets and liabiliti...

User Profile
Exper...

Acct220: Principles of Accounting I Final Examination Complete Solution

A. $1,794.60
b.$1,719.60
c.$1,638.00
d.$1,713.00
e.$1,876.20
a.Deducted from the balance per books  
b.Deducted from the balance per bank statement
c.Added to the balance per ...

User Profile
Exper...

Acct220: Principles of Accounting I Final Examination Complete Solution Required

A. $1,794.60
b.$1,719.60
c.$1,638.00
d.$1,713.00
e.$1,876.20
a.Deducted from the balance per books  
b.Deducted from the balance per bank statement
c.Added to the balance per ...

The benefits of buying study notes from CourseMerit

homeworkhelptime
Assurance Of Timely Delivery
We value your patience, and to ensure you always receive your homework help within the promised time, our dedicated team of tutors begins their work as soon as the request arrives.
tutoring
Best Price In The Market
All the services that are available on our page cost only a nominal amount of money. In fact, the prices are lower than the industry standards. You can always expect value for money from us.
tutorsupport
Uninterrupted 24/7 Support
Our customer support wing remains online 24x7 to provide you seamless assistance. Also, when you post a query or a request here, you can expect an immediate response from our side.
closebutton

$ 629.35