Reference no: EM131219475
Louis, Toi, Alonzo, and Sylvia, (L, T, A, and S) a local public accounting firm, uses job order costing to capture the costs of reviews performed. There were no review jobs in process on July 1. Records maintained by L, T, A and S reveal the following data concerning the three reviews performed during July.
Bobby Stephanie Flenoil
Direct materials $ 600 $ 400 $ 200
Labor costs $6,600 $3,375 $5,400
Hours 90 45 70
Total estimated overhead for reviews for the year is $123,000. Annual review hours for the year is expected to be 2,460. Overhead costs are applied to reviews on the basis of hours.
The actual overhead for the month of July was $11,000.
The Stephanie review was incomplete at the end of July.
INSTRUCTIONS:
In a memo to your supervisor, indicate the following information related to the month of July:
a. The predetermine overhead rate for reviews.
b. The total cost of each review at July 31.
c. The balance in REVIEWS in PROCESS at July 31.
d. Whether overhead was over- or under-applied for the month of July.
|
LIFO methods of accounting for inventory
: Compute the company’s cost of goods sold and inventory balances for fiscal 2013 assuming the company used a) FIFO and b) LIFO methods of accounting for inventory:
|
|
Units-of-output method and double-declining-balance method
: Razar Sharp Company purchased equipment on July 1, 2014, for $33,750. The equipment was expected to have a useful life of three years, or 5,940 operating hours, and a residual value of $1,080. Determine the amount of depreciation expense for the year..
|
|
What caused the stock price of the company to drop
: SunPower Corp. slumped after the second-biggest U.S. solar manufacturer scrapped a target to at least break even this year, in part because of challenging conditions in its power-plant business. What caused the stock price of the company (sunpower co..
|
|
Use the stainless steel pump rather than new brass pump
: A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 years. However, a used stainless steel pump that should last 3 more years has been sitting in the maintenance shop for a yea..
|
|
Job order costing to capture the costs of reviews performed
: Louis, Toi, Alonzo, and Sylvia, (L, T, A, and S) a local public accounting firm, uses job order costing to capture the costs of reviews performed. There were no review jobs in process on July 1. Total estimated overhead for reviews for the year is $1..
|
|
About the business trip
: After his first business trip to a major city, Herman is alarmed when he reviews his credit card receipts. Both the hotel bill and the car rental charge are in excess of the price he was quoted. Was Herman overcharged, or is there an explanation for ..
|
|
What are the ending assets for the year
: Beginning assets were $437,600, beginning liabilities were $262,560, common stock issued during the year totaled $45,000, revenue for the year was $414,250, expenses for the year were $280,000, dividends declared was $22,700, and ending liabilities i..
|
|
Prepare a retained earnings statement for the year
: On January 1, 2014, Eddy Corporation had retained earnings of $545,310. During the year, Eddy had the following selected transactions. Prepare a retained earnings statement for the year.
|
|
What are average and marginal tax rates for single taxpayer
: What are the average and marginal tax rates for a single taxpayer with a taxable income of $70,000? What are the average and marginal tax rates for married taxpayers filing joint returns if their joint taxable income is also $70,000?
|