Assignment help , Managerial Accounting

Assignment Help:
Excercise 2-5
Granger products had the following transactions for the just completed month. The company had no beginning inventories.

a)$75,000 in raw materials were purchased for cash.
b) $73,000 in raw materials were requisionted for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.
c) Total labor wages of 152,000 were incurred and paid. Of this amount, 134,000 was for direct labor and the remainder for indirect labor.
d) additional manufacturing overhead costs of 126,000 were incurred and paid.
e) manufacturing overhead costs of 178,000 were applied to jobs using the company''s predetermined overhead rate.
f) all of the jobs in progress at the end of the month were completed and shipped to customers.
g) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:
1) Post above transactions to T-Accounts
2) Determine the cost of goods sold for the period.

Excercise 2-7
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. this predetermined rate was based on a cost forumla that estimated $171,200 of total manufacturing overhead for an estimated activity level of 8,000 direct labor hours.

The company incurred actual total manufacturing overhead costs of 172,500 and 8,250 total direct labor hours during the period.

1) Determine the amount of underapplied or overapplied manufacturing overhead for the period
2) Assuming that the entire amount of the underapplied or overapplied overhead is closed out to Cost of Goods Sold, what would be the effect of the underapplied or overapplied overhead on the company''s gross margin for the period?


Related Discussions:- Assignment help

Relevant Cost, Outline Five characteristics of relevant cost

Outline Five characteristics of relevant cost

Collection effort, The collection policy of a firm is intend at timely coll...

The collection policy of a firm is intend at timely collection of overdue amount and comprises of the subsequent. a.      Monitoring the state of debtors (account receivable)

Determine the objectives of ratio analysis, Objectives of ratio analysis ...

Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.

#Budgets, #Explore the behavioral aspects of budgeting#

#Explore the behavioral aspects of budgeting#

Activity –based techniques, Explains how activity –based techniques can be ...

Explains how activity –based techniques can be used to improve performance

Financial perspective, Financial Perspective How do we produce value fo...

Financial Perspective How do we produce value for our shareholders? This perspective covers traditional measures e.g. growth, liability, shareholder value. But these are set on

Monitoring receivables, A firm requires continuously monitoring and control...

A firm requires continuously monitoring and controlling its receivables to make sure that the dues are paid on the due date and no dues stay outstanding for a long period of time.

Define the modes of hybrid instrument, Define the modes of Hybrid Instrumen...

Define the modes of Hybrid Instrument? 1. What are a variety of investment risks. Describe them. 2. Define the modes of Hybrid Instruments and clarify their features.

Process Inventory, Hoe to find the cost of goods transferred under weighted...

Hoe to find the cost of goods transferred under weighted average method

Cash collection and disbursements, Once the cash budget has been arranged a...

Once the cash budget has been arranged and suitable net cash flows established the finance manager must ensure that there does not exists an important deviation in between actual a

Write Your Message!

Captcha
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