Ch3 in class problems

Ch3 in class problems - 3-51 (30

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Unformatted text preview: 3-51 (30 MINUTES)1.hourmachineper$651,000$306,000hoursmachinebudgetedoverheadingmanufacturbudgetedrateoverheadnedPredetermi===2.Calculation of applied manufacturing overhead:Applied manufacturing overhead = machine hrs. used x predetermined overhead rate$36,000 = 6,000 hrs. x $6 per hr.3.Underapplied overhead=actual overhead applied overhead$2,000=$38,000 $36,0004.Cost of Goods Sold...........................................................2,000Manufacturing Overhead........................................2,0005.(a)Calculation of proration amounts: (Note: there is an error in the question in the Text: For this section assume the following: Job B19 is in WIP, Job T28 is finished & Job M07 Sold)AccountExplanationAmount*PercentageCalculationof PercentageWork in ProcessJob B19 only$10,80030%10,800 36,000Finished GoodsJob T28 only18,00050%18,000 36,000Cost of GoodsSoldJob M07 only7,20020%7,200 36,000Total$36,000100%*Machine hours used on jobpredetermined overhead rate.AccountUnderapplied OverheadPercentageAmount Addedto AccountWork in Process$2,00030%$ 600Finished Goods2,00050%1,000Cost of Goods Sold2,00020%400Total$2,000(b)Journal entry:Work-in-Process Inventory..................................................600Finished-Goods Inventory...................................................1,000Cost of Goods Sold..............................................................400Manufacturing Overhead...........................................2,0003-40 (45 MINUTES)NOTE: The 12/31/x4 balances for cash and accounts receivable, although given in the problem, are irrelevant to the solution....
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This note was uploaded on 02/18/2012 for the course BUSE 237 taught by Professor Sf during the Spring '12 term at Simon Fraser.

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Ch3 in class problems - 3-51 (30

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