Budgeted manufacturing overhead costs. $1,160,000 Budgeted direct manufaturing labor-hours 29,000 hours Data tableActual direct materials usedActual direct manufacturing labor costs paid in cashIndirect materials usedSupervision and engineering salaries paid in cashPlant utilities and repairs paid in cashPlant depreciationActual direct manufacturing labor-hoursCost of individual jobs completed and transferred to finished goodsCost of goods soldGA$$20,00050,0002,00049,0007,000$ 20,0003,000230,000$ 225,000X Huckvale Corporation manufactures custom cabinets for kitchens. Ituses a normal-costing system with two direct cost categories-directmaterials and direct manufacturing labor-and one indirect cost pool,manufacturing overhead costs. It provides the following information forApril 2020:(Click the icon to view the information for 2020.)(a)Present the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not required.)Journal EntryAccountsPresent the journal entry for (b) manufacturing labor incurred.(b)Journal EntryCAccountsThe following information is also available for 2020:(Click the icon to view the additional information.)Read the requirement.DebitDebitCreditCredit

The direct Costs incurred are debited to work in process account. The indirect cost incurred is…

esent the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not re Journal Entry Accounts esent the journal entry for (b) manufacturing labor incurred. Journal Entry Accounts Debit Debit Credit Credit

esent the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not re Journal Entry Accounts esent the journal entry for (b) manufacturing labor incurred. Journal Entry Accounts Debit Debit Credit Credit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 10EB: This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the...

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Haley Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor and one indirect-cost pool, manufacturing overhead costs. View the manufacturing overhead costs information for 2020. View the other information available as of December 31, 2020. Requirement Calculate the underallocated or overallocated manufacturing overhead at the end of 2020 and prorate it to Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal costing. Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. (Assume the cost allocation base is direct labor hours.) Budgeted indirect cost rate Information Account Work-in-process control Finished goods control Cost of goods sold Total Account Balance (Before Proration) GA $ GAGA 35,000 65,000 1,700,000…
The following information has been extracted from the cost accounting information system database for Victoria Furnitures Ltd. The company manufactures different types of furniture’s, including tables; The company manufactured 1,000 tables during the year 2020. Required: Using the information provided in the above table identify and explain how you classify each of the above costs according to the functional approach; Use the tables as the cost object in the classification of the costs.
Clara Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor-and one indirect-cost pool, manufacturing overhead costs. View the manufacturing overhead costs information for 2020. View the other information available as of December 31, 2020. Requirement Calculate the underallocated or overallocated manufacturing overhead at the end of 2020 and prorate it to Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal costing. Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. (Assume the cost allocation base is direct labor hours.) Budgeted indirect cost rate + Manufacturing Overhead Costs Budgeted manufacturing overhead costs Budgeted direct manufacturing labor hours Actual manufacturing overhead costs Actual direct…
Huckvale Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor-and one indirect-cost pool, manufacturing overhead costs. View the manufacturing overhead costs information for 2020. View the other information available as of December 31, 2020. Requirement Calculate the underallocated or overallocated manufacturing overhead at the end of 2020 and prorate it to Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal costing. Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. (Assume the cost allocation base is direct labor hours.) Budgeted indirect cost rate + + Manufacturing Overhead Costs Print Budgeted manufacturing overhead costs Budgeted direct manufacturing labor hours Actual manufacturing overhead costs Actual…
Your manager asks you to bring the following incomplete accounts of Endeavor Printing, Inc., up to date through January 31, 2017. Consider the data that appear in the T-accounts as well as the following information in items (a) through (j). Endeavor's normal-costing system has two direct-cost categories (direct material costs and direct manufacturing labor costs) and one indirect-cost pool (manufacturing overhead costs, which are allocated using direct manufacturing labor costs). Materials Control Wages Payable Control 12-31-2016 Bal. 30,000 1-31-2017 Bal. 6,000 Work-in-Process Control Manufacturing Overhead Control 1-31-2017 Bal. 114,000 Finished Goods Control Costs of Goods Sold 12-31-2016 Bal. 40,000 Additional information follows: a. Manufacturing overhead is allocated using a budgeted rate that is set every December. You forecast next year's manufacturing overhead costs and next year's direct manufactur- ing labor costs. The budget for 2017 is $1,200,000 for manufacturing overhead…
Garo Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2020: (Click the icon to view the data.) Requirements 1. 2. Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in 2020 and (b) cost of direct materials used in 2020. Calculate the ending work-in-process inventory on December 31, 2020. More info • Total manufacturing costs, $8,250,000 • Manufacturing overhead allocated, $3,850,000 (allocated at a rate of 250% of direct manufacturing labor costs) • Work-in-process inventory on January 1, 2020, $350,000 ⚫ Cost of finished goods manufactured, $7,960,000 Print Done Requirement 1. Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in 2020 and (b) cost of direct materials used in 2020. (Abbreviation…
Huckvale Corporation manufactures custom cabinets for kitchens. It uses an actual costing system with two direct-cost categories-direct materials and direct manufacturing labor-and one indirect-cost pool, manufacturing overhead costs. It provides the following information for 2020. (Click the icon to view the information for 2020.) Read the requirement. Begin by calculating the actual manufacturing overhead rate. (Assume the cost allocation base is direct labor hours.) Actual manufacturing overhead rate Data table + Budgeted manufacturing overhead costs Budgeted direct manufacturing labor-hours Actual manufacturing overhead costs Actual direct manufacturing labor-hours = 1,160,000 29,000 hours 1,260,000 28,000 hours X
The assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work-in-process inventory. Begin by summarizing total costs to account for. Total costs to account for Total CH Production Costs Direct Materials Conversion Costs
When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the cost items and amounts shown below (amounts are assumed). Enter the amount for each item in the appropriate cost category. Then sum the amounts in each cost category column. Payee Winona Agency Bill Johnson (sales manager) Xcel Energy Winona Printing Jim Kaiser (sales representative) Dave Thill (factory manager) Dana Schultz (kavak assembler) Purpose Property insurance for the factory Payroll check-payment to sales manager Electricity for factory Price lists for salespeople Sales commissions Payroll check-payment to factory manager Payroll check-payment to kayak assembler Amount 2,740 1,450 390 74 1,090 1,250 668 $ Direct Materials Ih SUPPORT
[The following information applies to the questions displayedbelow.]We discuss how to prepare the cost of goods manufactured reportand the income statement. The cost of goods manufactured reportshows the cost of goods manufactured, which is used in theincome statement to compute cost of goods sold, which is used tocalculate net operating income. Knowledge Check 02Venus International makes customized furniture and uses job order costing. Duringa period, its beginning raw materials inventory was $10,000. It purchased rawmaterials of $20,000 and ended the period with ending raw materials inventory of$3,000. What is the cost of raw materials transferred to Work in Process Inventory?$27,000$33,000$30,000$20,000Knowledge Check 03Smith and Stein Inc. is a jeweler specialized in making exclusive designs for itscustomers. Its unadjusted cost of goods sold in a period is $150,000 and theperiod's sales revenue is $225,000. If the underapplied manufacturing overhead is$5,000, calculate the gross…
Michael Roberts is a cost accountant and business analyst for HP Clothing Company (HPCC). which manufactures expensive T-shirts. HPCC uses two direct cost categories: direct materials and direct manufacturing labor. It allocates manufacturing overhead to production based upon labor hours used. At the beginning of 2020, HPCC adopted the following standards for cach Tshirt: Input Direct materials Standard Quantity Standand Price Or Hour 3.1 kg Or Rate $9 kg Direct labor 2 hours S8 hour Variable overhead S5 hour 2 hours Actual results for April 2020 were as follows: Production Direct materials purchased Direct materials used Direct labor Variable manufacturing overhead $ 35,600 3,200 T-shirts 12,900 kg at S10 kg 9,000 kg 7,200 hours for $59,000 Required: a) Compute the standard variable product cost per unit. b) For the month of April 2020, compute the following variances, indicating whether each is favorable or unfavorable: i. Direct materials price variance, based on purchases ii.…
Info in images Required: 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin $0 2. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $0 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2…