User Account

All Pages

Compute the amount of manufacturing overhead

Assignment Help Managerial Accounting
Reference no: EM132481446

Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of June.

Debits to account:

Balance, June 1 $ 5,000

Direct materials 20,000

Direct labor 12,100

Manufacturing overhead (applied to jobs as 125% of direct labor cost) 15,125

Total debits to account $ 52,225

Credits to account:

Transferred to Finished Goods Inventory account 44,000

Balance, June 30 $ 8,225

Required:

Question a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,500, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30.

Question b. Prepare general journal entries to summarize:

1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June.

2. The transfer of production completed during June to the Finished Goods Inventory account.

3. The cash sale of 80 percent of the merchandise completed during June at a total sales price of $54,000. Show the related cost of goods sold in a separate journal entry.

Reference no: EM132481446

Questions Cloud

Business model deconstruction assignment : Business Model Deconstruction Assignment help and solution - Define and apply key concepts of innovation in commercial, digital, service, and social contexts
Discuss the non-monetary factors : What cost-volume relationships should Paulsen take into consideration for the original price and the proposed new selling price?
What is the capital structure of respected organization : Determine whether the entity's financial position improved or deteriorated during the reporting period. Speculate on the causes from your review
Determine if can use sugar intake and hours of exercise : Determine if we can use sugar intake and hours of exercise to predict an individual's weight change, which test should we use?
Compute the amount of manufacturing overhead : Compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30.
Make the ajusting entries : Accountant but does keep a summary of selected transactions for the fiscal year ended JANUARY 31, YEAR 2008. Making the ajusting entries.
Shortest route linear programming model : What is a process that could be improved by the application of a shortest route linear programming model? How would this model improve production, profit
What is the minimum sales price for steel blades : What is the minimum sales price for steel blades after it starts selling composite blades (assuming that it does)? For this problem, assume that composite blade
Determine and show the statement of profit or loss : Show the statement of profit or loss and statement of financial position extracts in respect of the grant in the first year under both methods.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Which activities are done each time a wafer is produced

Which activities are done each time a wafer is produced (unit-level activities)? Which activities are done each time a batch is produced? Which activities are done to enable production to take place (product-level activities)?

  Using information in the company statement of cash flows

Go to the Web site for investor relations Alaska Air Group and find the company's consolidated financial statements for 2008 under financial reports.

  Complete with respect to department s costs

Refer to the information in Problem.

  Prepare an income statement for fiscal

Prepare an income statement for fiscal 2011 Ignore income taxes.

  What would be the benefit to the firm of gaining

Focusing only on the Model C210 chisel and the model D400 chisel, what would be the benefit to the firm of gaining one more hour of production time in coating and sharpening?

  Who should be involved in setting the standards

What standards could be set within each of the three production departments of the company? How should standards be set? Who should be involved in setting the standards?

  Determine the weighted-average unit contribution margin

How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified - What approaches could have yielded additional valuable information?

  Compute the equivalent units for the conversion

Compute Equivalent Units FIFO Method and compute the equivalent units for the conversion cost calculation.

  Calculate and explain which share has most systematic risk

FINC20018 Managerial Finance - Calculate and explain which share has the most total risk and Discuss which share is actually the 'riskier' share

  Units of production data for the two departments of

units of production data for the two departments of atlantic cable and wire company for august of the current fiscal

  Cost accumulation-definition-methods and steps

In brief describe and draw a diagram of the cost accumulation process for a traditional manufacturing company.

  Calculate the net benefit of accepting the special order

Calculate the net benefit of accepting the special order - The company's sales manager argues for rejecting the order because "we are not in the business of pay

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd