3.25 Accounting 211 - Job 16A4 = $31,673 Job 21C2 = $66,394...

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Accounting 211 Thursday, March 25th, 1999 Announcements: none Lecture notes: Example:
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1/1/98 12/31/98 Raw Material 10,000 15,000 WIP 39,000 31,000 Finished Goods 74,000 87,000 98 Raw Material Purchases = 20,000 Raw Materials Used in Production = 20,000 - (15,000 - 10,000) = 15,000 COGS = $120,000
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FINISHED GOODS COGM COGS Change = 13,000 COGM > COGS by 13,000 COGM = $133,000
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WIP Manuf. Costs COGM Change = 8,000 COGM > Manuf. Costs by 8,000 Manufacturing Costs = $125,000 Predetermined Overhead Rate Estimated Overhead / Estimated Activity Level Page 753, Exercise 5 19X8 Predetermined Overhead Rate = 1,145,000 / 90,000 = $12.72
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Unformatted text preview: Job 16A4 = $31,673 Job 21C2 = $66,394 Job 17H3 = $54,314 Page 753, Exercise 6 Total Overhead Applied = 89,920 x 12.72 = 1,143,782 Actual Overhead = 1,143,400 Overapplied Overhead = 382 3 accounts affected: WIP, finished goods, COGS Activity Based Costing Multiple overhead rates More accurate than using a single predetermined overhead rate New Income Statement Format Sales- Variable Costs Contribution Margin- Fixed Costs Net Income Sales in units = 10,000 Sales 100,000- Variable Costs- 60,000 Contribution Margin 40,000- Fixed Costs- 20,000...
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This note was uploaded on 02/20/2008 for the course ACCTG 211 taught by Professor Johnston during the Spring '99 term at Pennsylvania State University, University Park.

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3.25 Accounting 211 - Job 16A4 = $31,673 Job 21C2 = $66,394...

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