601 3, 5 solutions

601 3, 5 solutions - EXERCISE 3-33 (20 MINUTES) 1. (a) (b)...

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EXERCISE 3-33 (20 MINUTES) 1. Predetermined overhead rate = driver cost of level budgeted overhea ing manufactur budgeted (a) hours machine 20,000 $650,000 = $32.50 per machine hour (b) hours labor - direct 25,000 $650,000 = $26.00 per direct-labor hour (c) * $325,00 $650,00 = $2.00 per direct-labor dollar or 200% of direct-labor cost *Budgeted direct-labor cost = 25,000 × $13 2. Actual manufacturi ng overhead applied manufactur ing overhead = overapplied or underapplied overhead (a) $690,000 – (22,000) ($32.50) = $25,000 overapplied overhead (b) $690,000 – (26,000) ($26.00) = $14,000 underapplied overhead (c) $690,000 – ($364,000 ) (200%) = $38,000 overapplied overhead Actual direct-labor cost = 26,000 × $14 PROBLEM 3-42 (20 MINUTES) 1. hour per $13 (10) (2,000) $260,000 hours labor - direct budgeted overhea ing manufactur budgeted rate overhead ned Predetermi = = = 2. Journal entries: (a) Raw-Material Inventory. ...................... 34,800
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Accounts Payable. ........................ 34,800 (b) Work-in-Process Inventory. .................. 540 Raw-Material Inventory. ............... 540 (c) Manufacturing Overhead. .................... 125 Manufacturing-Supplies Inventory 125 (d) Manufacturing Overhead. .................... 7,000 Accumulated Depreciation: Building. ............................................. 7,000 (e) Manufacturing Overhead. .................... 300 Cash. ........................................... 300 (f) Work-in-Process Inventory. .................. 31,900 Wages Payable. ............................ 31,900 To record direct-labor cost. Work-in-Process Inventory. .................. 18,850 Manufacturing Overhead. ............. 18,850 To apply manufacturing overhead to work in process ($18,850 = 1,450 x $13 per hour). (g) Manufacturing Overhead. .................... 890 Property Taxes Payable. ............... 890 (h) Manufacturing Overhead. .................... 3,100 Wages Payable. ............................ 3,100 PROBLEM 3-42 (CONTINUED) (i) Finished-Goods Inventory. ................... 15,100 Work-in-Process Inventory. ........... 15,100 (j) Accounts Receivable. ........................... 14,400 Sales Revenue. ............................. 14,400 Cost of Goods Sold. ............................. 11,325* Finished-Goods Inventory. ............ 11,325
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*$11,325 = (9/12)($15,100)
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PROBLEM 3-44 (45 MINUTES) 1. M ISTER M UNCHIE , I NC . S CHEDULE OF C OST OF G OODS M ANUFACTURED F OR THE Y EAR E NDED D ECEMBER 31, 20 X 4 Direct material: Raw-material inventory, 12/31/x3. ........... $ 30,300 Add: Purchases of raw material. .............. 117 ,000 Raw material available for use. ............... $147,30 0 Deduct: Raw-material inventory, 12/31/x4. .................................................... 33,000
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This note was uploaded on 04/21/2010 for the course ACCT 621 taught by Professor Crotter during the Spring '10 term at UPenn.

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601 3, 5 solutions - EXERCISE 3-33 (20 MINUTES) 1. (a) (b)...

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