Compute the amount of underapplied or overapplied overhead

Assignment Help Managerial Accounting
Reference no: EM132815184

Question - New York Injection Moulding operates a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. In computing an overhead rate for the year, the company's estimates were as follows: manufacturing overhead cost, $238,000, and machine-hours, 30,000. The company has provided the data in the following table:

Beginning Ending

Raw Materials $24,000 $16,000

Work in Process $48,000 $43,000

Finished Goods $72,000 $63,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct) $138,000

Direct labour $90,000

Machine-hours 45,000

Manufacturing overhead costs $255,000

Required -

1. Compute the predetermined overhead rate for the year.

2. Compute the amount of underapplied or overapplied overhead for the year. How is overapplied (underapplied) overhead disposed of at year-end?

3. Create a schedule of cost of goods manufactured for the year.

4. Compute the cost of goods sold for the year.

5. Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,400 in materials, $4,000 in direct labour cost, and required 380 machine-hours to complete? Assume the company prices its jobs at 40% above the job's cost according to the accounting system.

6. Direct labour made up $7,000 of the $43,000 ending Work in Process inventory balance. A total of 2,050 machine-hours had been applied to the incomplete units of product included in Work in Process inventory at year-end. Supply the information missing below.

Reference no: EM132815184

Questions Cloud

Reflect on the ethics of strategic enrollment management : Reflect on the ethics of strategic enrollment management that were discussed in Module Four. Now that you have investigated different dimensions of SEM.
How the resource can be used to support your selected issue : To sample what information is available, locate one source (NAEYC, First Things First, Zero to Three, etc.) to support developmentally appropriate practices.
How much in surtax will jacob be assessed : How much in surtax will Jacob be assessed on his Form 1040 for 2020? Jacob is a single taxpayer who has net investment income consisting of $10,000 interest
Describe a stage in erik erikson stage theory : Describe a stage in Erik Erikson's stage theory and one positive and one potentially negative outcome.
Compute the amount of underapplied or overapplied overhead : Compute the amount of underapplied or overapplied overhead for the year. How is overapplied (underapplied) overhead disposed of at year-end
Define key concepts and learning processes : Clearly define key concepts and learning processes from the theory you have chosen, and outline how these concepts and processes apply your plan for behaviour c
About your hypothetical business : Briefly remind us about your hypothetical business (the one you have created for your four assignments) and your target audience.
In what ways do the theories differ from each other : Families everywhere get excited when their baby begins to talk. As you read in your texts, infants' verbal communication skills become increasingly complex.
How much of the collected mil should chester show : How much of the collected $3.015mil should Chester show on the March 31st income statement and how much on the May 31st income statement?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

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