1. What is the ending balance in Work in Process?
2. Is manufacturing overhead underapplied or overapplied for the year? By how much?
3. What is the cost of goods available for sale during the year?
4. What is the journal entry to record the cost of goods sold referred to in item h above?
Record the cost of goods sold to the customer.
5. What is the ending balance in Finished Goods?
6. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?
7. What is the gross margin for the year?
8. What is the net operating income for the year?
1) calculate ending balance of work in process
Work in process | |||
Beg Bal | 30800 | 1521800 | Finished goods |
Direct material | 655400 | ||
Direct labor | 430000 | ||
Overhead (41000*12) | 492000 | ||
End Bal | 86400 |
2) Applied overhead = 492000
Actual overhead = 150000+330000 = 480000
Over applied overhead = 12000
3) Cost of goods available for sale = 1521800+43200 = 1565000
4) Journal entry
No | General Journal | Debit | Credit |
Cost of goods sold | 1531800 | ||
Finished goods | 1531800 | ||
5) Ending balance of finished goods
Finished goods | |||
Beg Bal | 43200 | Cost of goods sold | 1531800 |
WIP | 1521800 | ||
End Bal | 33200 |
6) Adjusted cost of goods sold = 1531800-12000 = 1519800
7) Gross margin = 3255000-1519800 = 1735200
8) Net operating income = 1735200-251000-411000 = 1073200
1. What is the ending balance in Work in Process? 2. Is manufacturing overhead underapplied or...
1. What is the total manufacturing cost added to Work in Process during the year? 2. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? Record the manufactured goods completed during this year. 3. What is the ending balance in Work in Process? 4. What is the total amount of actual manufacturing overhead cost incurred during the year? 5. Is manufacturing overhead underapplied or overapplied for the year? By...
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Required information The Foundational 15 (LO3-1, LO3-2, LO3-3, LO3-4) (The following information applies to the questions displayed below.) 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 $ 60,500 $ 20,800 $ 57,600 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $11.25 per direct labor-hour was based on...
Required information The Foundational 15 (Algo) (LO3-1, LO3-2, LO3-3, LO3-4) [The following information applies to the questions displayed below.) 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 $ 50,000 $ 30,800 $ 43,200 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $12.00 per direct labor-hour was based...
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 $ 50,000 $ 39,800 $ 43,200 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $12.00 per direct labor-hour wes based on a cost formula that estimated $480,000 of total manufacturing overhead for an estimated activity level of 40,000 direct...
5. What is the total manufacturing cost added to Work in Process during the year? 6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? 7. What is the ending balance in Work in Process? 8. What is the total amount of actual manufacturing overhead cost incurred during the year? Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows:...