Reference no: EM132653989
Questions -
Q1. Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2020 is provided:
Item Amount
Sales $850,000
Beginning Raw Material Inventory 74,000
Direct Material Purchased 318,000
Factory Overhead 90,000
Finished Goods Inventory - January 1 144,000
Work in Process - January 1 74,000
Work in Process - December 31 98,000
Ending Raw Material Inventory 58,000
Finished Goods Inventory - December 31 168,000
Net Income 65,000
Direct Labor 155,000
Cost of Goods Sold 531,000
Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2020.
Q2. During March 2019, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead. Virginia Bay's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $286,000 would be incurred, and 8,100 direct labor hours would be worked. During March, 11,000 hours were actually worked. Use this information to determine the standard overhead rate.
Q3. During March 2019, Alaska Corporation recorded $236,000 of costs related to factory overhead. Alaska's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $250,000 would be incurred, and 12,500 direct labor hours would be worked. During March, 13,200 hours were actually worked. Use this information to determine the amount of overhead over or under applied. Enter overapplied overhead as a negative number.
Q4. On March 31, 2019, Dorchester Corporation recorded the following factory overhead costs incurred:
Factory Manager Salary $5,500
Factory Utilities 2,800
Machinery Deprecation 9,000
Machinery Repairs 1,800
Factory Rent 2,000
The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $22,000 would be incurred, and 2,000 direct labor hours would be worked. During March, 650 hours were actually worked on Job Order 3-1 and 1,200 hours were actually worked on Job Order 3-2. Use this information to prepare the March 31 General Journal entries, without explanations, for the: (round any final dollar answers to the nearest whole dollar):
1. to record the factory overhead costs
2. the allocation of factory overhead to Job Order 3-1
3. the allocation of factory overhead to Job Order 3-2
4. the adjusting entry to dispose of any over or under application of factory overhead
Q5. March 1, 201, Dorchester Company's beginning work in process inventory had 7,000 units. This is its only production department. Beginning WIP units were 50% complete to conversion costs. Dorchester introduces direct materials at the beginning of the production process. During March, all beginning WIP was completed and an additional 17,500 units were started and completed. Dorchester also started but did not complete 8,500 units. These units remained in ending WIP inventory and were 60% complete to conversion costs. Dorchester uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs.