Statement of changes in retained earnings | |||||
Decrease in retained earnings: | |||||
Depreciation Expense | 7000 | ($ 35000 x 20%) | |||
Insurance Expense | 625 | ($ 2500 x 25%) | |||
7625 | |||||
Increase in retained earnings: | |||||
Overapplied OH | 28125 | (W.N) | |||
Net changes in retained earnings | 20500 |
W.N | |||||
Computation of over/underapplied OH | |||||
Manufacturing OH cost incurred | $ 80,000.00 | ||||
Depreciation on factory equipment | $ 7,000.00 | ($ 35000 x 80%) | |||
Insurance expense related to production | $ 1,875.00 | ($ 2500 x 75%) | |||
Total Manufacturing OH incurred | $ 88,875.00 | ||||
Manufacturing OH applied | $ 1,17,000.00 | ||||
Overapplied OH | $ 28,125.00 |
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A company is a manufacturer that completed numerous transactions during the month, some of which are...
A company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was recorded for the month, $35,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). c. Prepaid insurance expired during the month, $2,500 (75% related to production, and 25% related to selling and administration). d. Applied $116,000 of manufacturing overhead to production during the month. e. Closed...
Help Save & EXH A company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was recorded for the month, $35,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). c. Prepaid insurance expired during the month, $2,500 (75% related to production, and 25% related to selling and administration). d. Applied $117,000 of manufacturing overhead to production during...
Savod A company is a manufacturer that completed numerous transactions during the month, some of which are shown below Help a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was recorded for the month $35.000 (80% related to factory equipment, and the remainder related to seling administrative equipment). c. Prepaid insurance expired during the month $2,500 (75% related to production, and 25% related to selling and administra d. Applied $119,000 of manufacturing overhead to production during the month. e....
Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials purchased on account, $100,000. b. Raw materials used in production, $78,000 direct materials, and $16,000 indirect materials. c. Sales commissions paid in cash, $45,000. d. Depreciation was recorded for the month, $60,000(65% related to factory equipment, and the remainder related to selling and administrative equipment). e. Sales for the month, $450,000(70% cash sales and the remainder were sales on...
Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials purchased on account. $100.000. b. Raw materials used in production, $78,000 direct materials, and $16,000 indirect materials. c. Sales commissions paid in cash, $45,000. d. Depreciation was recorded for the month, $60,000 (65% related to factory equipment, and the remainder related to selling and administrative equipment). e. Sales for the month, $450,000 (70% cash sales and the remainder were...
Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials purchased on account, $100,000. b. Raw materials used in production, $78,000 direct materials, and $16,000 indirect materials. C. Sales commissions paid in cash, $45,000 d. Depreciation was recorded for the month, $60,000 (65% related to factory equipment, and the remainder related to selling and administrative equipment). e. Sales for the month, $450,000 (70% cash sales and the remainder were...
A manufacturer uses job-order costing. On January 1, the company's inventory balances were as follow Raw materials Work in process Finished goods $50.500 $25,000 $38,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials...
A manufacturer uses job-order costing. On January 1, the company's Inventory balances were as follow Raw materials Work in process Finished goods $50,500 $25,000 $38.100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year. a. Raw materials...
IE Seved Help Save & Exit Submit A manufacturer uses job-order costing. On January 1, the company's Inventory balances were as follow Raw materials $50,500 Work in process $25,000 Finished goods $38,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were...
Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: Morrison Company Balance Sheet January 1 Assets Cash $ 43,050 Raw materials $ 9,500 Work in process 5,550 Finished goods 22,350 37,400 Prepaid expenses 2,525 Property, plant, and equipment (net) 117,000 Total assets $ 199,975 Liabilities and Stockholders' Equity Accounts payable $ 8,700 Retained earnings 191,275 Total liabilities and stockholders' equity $ 199,975 During January the company completed...