Assume that a company closes any remaining balances in the
manufacturing overhead control account to the cost of goods sold
account. If the company has over applied its manufacturing overhead
the company would record which of the following entries:
DR cost of goods sold CR manufacturing overhead control |
DR work-in-process CR cost of goods sold |
DR manufacturing overhead control CR cost of goods sold |
|
2.The Whitestone Company uses a job-order costing system. The
predetermined overhead rate for fixed manufacturing overhead is
based on direct labour hours. The company has provided the
following estimates:
Direct labour hours 4,000
Variable manufacturing overhead $14,000
Fixed manufacturing overhead $10,000
Direct labour dollars $48,000
The company will use a predetermined fixed manufacturing overhead
rate of:
$2.50 per direct labour hour |
$12.00 per direct labour hour |
$7.00 per direct labour dollar |
$6.00 per direct labour dollar |
3.The CFO for Tangent Transit would like to improve its
efficiency of handling of customer inquiries on orders. He created
an online customer inquiry utility that allows customers to access
and track their orders. Under which of the efficiency improvement
steps will this fall?
Define a process map for each activity/process chosen. |
Identify value and non-value-adding activities. |
Create ways to eliminate all non-value-adding activities. |
Seek ways to improve value-adding-activities. |
4.
he CFO for Tangent Shipping would like to improve its efficiency
of processing customer orders. Which of the following is not part
of the 3 steps for improving efficiency?
Develop a process map for each activity/process chosen. |
Identify value and non-value-adding activities. |
Eliminate all non-value-adding activities. |
Seek ways to improve value-adding activities. |
Note : As HOMEWORKLIB RULES honor code only one question can be asked at a time hence i have answered question no. 1 hope you understand, for answer of rest of the question please post them again
Answer : 1
DR manufacturing overhead control
CR cost of goods sold
As
When manufacturing overhead will be over aplied in that case manufacturing overhead controll account will show credit balance which will be closed by transferring the amount to the cost of goods sold account. For this Manufacturing overhead control account will be debited and cost of goods sold account will be credited. Hence our answer is
DR manufacturing overhead control
CR cost of goods sold
Answer 2 : $2.50 per direct labor hour
Calculated as
Direct labor hours = 4000
Fixed manufacturing overhead $10,000
Predetermined fixed manufacturing overhead rate = Fixed manufacturing overhead/Direct labor hours
= $10000/4000
= $2.50 per direct labor hours
Assume that a company closes any remaining balances in the manufacturing overhead control account to the...
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Example 5 The BCE Company allocated manufacturing overhead using predetermined overhead rate of 150% of direct manufacturing labour. The records show the following for the period: Direct Materials Used $35,000 $60,000 $94,000 Work-in-process control - ending inventory = $ 5,000 Finished Goods control - ending inventory = $15,000 - Direct Manufacturing Labour Manufacturing Overhead Control There were no beginning inventories of work-in-process or finished goods. The cost of goods sold for the period woud be:
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