Req 1: |
Pre-determined Overheads rate: Estimated Overheads / Estimated machine hours |
($ 4500,000 /50,000 MH) = $ 90 per Mh |
Req 2: | |
Under/Over-applied Overheads: | |
Actual manufacturing overheads incurred | 46,00,000 |
Less: Overheads Applied (60000 hours @90) | 5400000 |
Over applied overheads | 8,00,000 |
Req 2-a | |||
Journal entry | |||
Date | Account title and explanations | Debit $ | Credit $ |
Manufacturing Overheads | 8,00,000 | ||
Cost of Goods sold | 8,00,000 |
Req 2-b | |||
Allocation of Under-applied Overhead on the basis of ending Balance | |||
Inventory | Ending Balance | Overr-applied OH allocated | |
Wwork in Process | 15,00,000 | 80000 | |
Finished Goods | 22,50,000 | 120000 | |
Cost of Goods sold | 1,12,50,000 | 600000 | |
TOTAL | 1,50,00,000 | 8,00,000 |
Journal entry | |||
Date | Account title and explanations | Debit $ | Credit $ |
2011 | Manufacturing Overheads | 8,00,000 | |
Work in process Inventory | 80000 | ||
Finished Goods Inventory | 120000 | ||
Cost of Goods sold | 6,00,000 |
Req 2-c | ||
Allocation of Under-applied Overhead on the basis of OH absorbed durirng the year in respective accounts: | ||
Inventory | MH used | Overr-applied OH allocated |
Wwork in Process | 3,000 | 40000 |
Finished Goods | 15,000 | 200000 |
Cost of Goods sold | 42,000 | 560000 |
TOTAL | 60,000 | 8,00,000 |
Journal entry | |||
Date | Account title and explanations | Debit $ | Credit $ |
2011 | Manufacturing Overheads | 8,00,000 | |
Work in process Inventory | 200000 | ||
Finished Goods Inventory | 40000 | ||
Cost of Goods sold | 5,60,000 |
Req 3: | ||
The best method of allocation of Over applied OH is proration on
the basis of overheads absorbed earlier (i.e. Machine hours used
earlier) As the overheads should have been absorbed on the basis of machine hour |
The Zef Radiatar Ccmpany usts a nrmal cnsing system with a sirgle manufacturing avehead cost pcol...
The Zef Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements Requirement 1. Compute the budgeted manufacturing overhead rate for 2017 Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing Overhead rate 1. Compute the budgeted manufacturing overhead rate for 2017. 2. Compute...
The Zef Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements. Requirement 1. Compute the budgeted manufacturing overhead rate for 2017 Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead rate 1 X - Data Table * Requirements - X Budgeted manufacturing overhead...
The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements. i Data Table X Requirements Budgeted manufacturing overhead costs $ 4,900,000 Overhead allocation base Machine-hours Budgeted machine-hours 70,000 Manufacturing overhead costs incurred $ 5,100,000 Actual machine-hours 65,000 Machine-hours data and the ending balances (before proration of under-or overallocated overhead) are as follows:...
The Hazy Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements Cost of Goods Sold Finished Goods Control Work-in-Process Control After Proration 11,028,750 1,297,500 648,750 c. Dispose of the amount using a proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and...
The Zero Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the rements. Data Table Requirement 1. Compute the budgeted manufacturing overhead rate for 2017. Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead 5,850,000 Budgeted machine-hours 90,000 Budgeted manufacturing overhead rate = $ 65...
3 The Hauty Radiator Company uses a normal costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base The following data are for 2017 Click the icon to view the following data) Read the requirements Requirement 1. Compute the budgeted manufacturing overhead rate for 2017 Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate Budgeted manufacturing overhead rate (1) (2) - Requirement 2. Compute the under or overallocated...
The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: Requirements1. Compute the budgeted manufacturing overhead rate for 2017 .2. Compute the under- or overallocated manufacturing overhead of Zaf Radiator in 2017 . Dispose of this amount using the following:a. Write-off to Cost of Goods Soldb. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Soldc....
1.
Compute the budgeted manufacturing overhead rate
for
2017.
2.
Compute the under- or overallocated manufacturing
overhead of
Home
Radiator in
2017.
Dispose of this amount using the following:
a.
Write-off to Cost of Goods Sold
b.
Proration based on ending balances (before proration) in
Work-in-Process Control, Finished Goods Control, and Cost of Goods
Sold
c.
Proration based on the overhead allocated in
2017
(before proration) in the ending balances of Work-in-Process
Control, Finished Goods Control, and Cost of Goods...
4. The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: (Click the icon to view the following data.) Read the requirements Requirement 1. Compute the budgeted manufacturing overhead rate for 2017 Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead 5,100,000 Budgeted machine-hours Budgeted manufacturing overhead rate $ 1 85,000 60 Requirement...
4-34 Proration of overhead. (Z. Iqbal, adapted) The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The follow- ing data are for 2011: Budgeted manufacturing overhead costs $4,800,000 Overhead allocation base Machine-hours Budgeted machine-hours 80,000 Manufacturing overhead costs incurred $4,900,000 Actual machine-hours 75,000 Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as follows: Cost of Goods Sold Finished Goods Control Work-in-Process Control...