1) | |||
Predetermined Overhead Application Rate (POR) = | Budgeted Manufacturing Overhead / Budgeted Direct Labor Cost | ||
Predetermined Overhead Application Rate (POR) = | $5,460,000 / $4,200,000 | 130% | of Direct Labor Cost |
of Direct Labor Cost | |||
2) | |||
Direct Material Used = | $5,550,000 | ||
Direct Labor = | $4,350,000 | ||
Direct Material Used = | $5,600,000 | ||
Direct Labor = | $4,350,000 | ||
Manufacturing Overhead = $4,350,000 x 130% | $5,655,000 | ||
Additions to the work-in-process inventory = | $15,605,000 | ||
3) | |||
Job # 2143 | |||
Direct Material Used = | $ 154,000.00 | ||
Direct Labor = | $ 85,000.00 | ||
Manufacturing Overhead = $4,350,000 x 130% | $ 110,500.00 | ||
Finished Goods Inventory | $ 349,500.00 | ||
4) | |||
Account Titles | Debit | Credit | |
Finished Goods Inventory ($15,605,000 + 156,800) | $15,761,800 | ||
Work-in-Process | $15,761,800 | ||
5) a) | |||
Actual Overhead = Indirect Material Used + Indirect Labor + Factory Depreciation + Factory Insurance + Factory Utilities | |||
Actual Overhead = $63,000 + $2,860,000 + $1,740,000 +$8,000 + $828,000 | $5,549,000.00 | ||
Applied Overhead = Direct Labor Cost * POR | $ 5,655,000.00 | ||
Over - Applied Overhead = | $ 106,000.00 | ||
b) | |||
Account Titles | Debit | Credit | |
Manufacturing Overhead | $ 106,000.00 | ||
Cost of good sold | $ 106,000.00 | ||
6) | |||
Finished-goods inventory, Jan. 1 | 0 | ||
Add: Cost of goods manufactured | $15,761,800 | ||
Cost of goods available for sale | $ 15,761,800.00 | ||
Less: Finished-goods inventory | $ 349,500.00 | ||
Unadjusted cost of goods sold | $ 15,412,300.00 | ||
Less: Overapplied overhead | $ 106,000.00 | ||
Cost of goods sold | $ 15,306,300.00 | ||
Required information [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a...
Required information [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor...
Required information [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor...
Required information [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor...
Required information [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor...
Required information [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor...
Can someone help me determine how to complete this journal entry? Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor...
Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company’s practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for...
Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company’s practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for...
Can someone help me reach the correct response to this question? Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours,...
Can someone help guide me to filling in this journal entry? [The following information applies to the questions displayed below.) Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is...