Travis Company's records show that overhead was overapplied y $12,400 last year. This overapplied overhead was...
Travis Company's records show that overhead was overapplied y $12,400 last year. This overapplied overhead was closed out to the Cost of Goods Sold account at the end of the year. In tring to determine why overhead was overapplied by such a large amount, the company has discovered that $7,600 of depreciation on factory equipment was charged to administrative expense in error. Given the above information, which of the following statements is true?
a. The company's net income is understated by $7,600 for the year
b. Under the circumstances posed above, the error in recording depreciation would have no effect.
c.manufacturing overhead was actually overapplied by $20,000 for the year
d. the $6,000 in depreciation should have been charged to Work-in-Process rather than to administrative expense
Homework Answers
b. Under the circumstances posed above, the error in recording depreciation would have no effect....(this option is to be selected).
Depreciation is a manufacturing overhead.
Though there is an error in charging manufacturing overhead to administrative overhead, the overall charge of overhead to the revenue will not differ.
So in this scenario it can be said that the error in recording depreciation will have no effect.
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Travis Company's records show that overhead was overapplied y
$12,400 last year. This overapplied overhead was...
Answer All Questions: 1. Compute the company's predetermined overhead rate. 2. Compute the underapplied or overapplied...
Answer All Questions:
1. Compute the company's predetermined overhead
rate.
2. Compute the underapplied or overapplied
overhead.
3. Assume that the company closes any underapplied or
overapplied overhead directly to Cost of Goods Sold. Prepare the
appropriate journal entry.
4. Assume that the company allocates any underapplied or
overapplied overhead to Work in Process, Finished Goods, and Cost
of Goods Sold on the basis of the amount of overhead applied that
remains in each account at the end of the...
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Duke Company's records show the following account balances at December 31, 2018: Sales cost of goods...
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9. Is manufacturing overhead underapplied or overapplied for the year? By how much? 10. What is...
9. Is manufacturing overhead underapplied
or overapplied for the year? By how much?
10. What is the cost of goods available for sale during the
year?
11. What is the journal entry to record the cost of goods sold
referred to in item h above?
12. What is the ending balance in Finished Goods?
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Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of...
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4-8 ultiple-step atement of ome and mprehensive ome -04-1, L04-3 04-5, LO4-6 Duke Company's records show the following account balances at December 31, 2021: Sales revenue $15,000,000 Cost of goods sold 9,000,000 General and administrative expense 1,000,000 Selling expense 500,000 Interest expense 700,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transac- tions are material in amount. 1. $300,000 in restructuring costs were incurred in connection with plant closings, 2. Inventory costing...
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please help thanks Osborn Manufacturing uses a predetermined overhead rate of $18.60 per direct labor-hour. This...
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The following data from the just completed year are taken from the accounting records of Mason...
The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 658,000 $ 87,000 $ 137,000 $ 108,000 $ 48,000 $ 209,000 $ 226,000 Inventories Raw materials Work in process Finished goods Beginning $ 8,100 $ 6,000 $ 73,000 Ending $ 10,100 $ 20,200 $ 25,800 Required: 1. Prepare a schedule...
Answer All Questions:
1. Compute the company's predetermined overhead
rate.
2. Compute the underapplied or overapplied
overhead.
3. Assume that the company closes any underapplied or
overapplied overhead directly to Cost of Goods Sold. Prepare the
appropriate journal entry.
4. Assume that the company allocates any underapplied or
overapplied overhead to Work in Process, Finished Goods, and Cost
of Goods Sold on the basis of the amount of overhead applied that
remains in each account at the end of the...
Duke Company's records show the following account balances at December 31, 2018: Sales cost of goods sold General and administrative expenses Selling expenses Interest expense $15,200,880 9,198,880 1,81e,90e 51e,98e 71e,90 Income tax expense has not yet been determined. The following events also occurred during 2018. All transactions are material in amount. 1. $310,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $410,000 was written off as obsolete. Material losses of this type are considered to...
9. Is manufacturing overhead underapplied
or overapplied for the year? By how much?
10. What is the cost of goods available for sale during the
year?
11. What is the journal entry to record the cost of goods sold
referred to in item h above?
12. What is the ending balance in Finished Goods?
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods...
Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense $15, 8ee, eee 9,480, eee 1,040, eee 540,000 740, eee Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount 1. $340,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $440,000 was written off as obsolete. Material losses...
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please help thanks
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