Week 12 - ACCT1511 TUTORIAL PREPARATION QUESTIONS WEEK 12...

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Unformatted text preview: ACCT1511 TUTORIAL PREPARATION QUESTIONS WEEK 12 Problem 17.2 1. Predetermined overhead rate = $675,000/75,000 = $9.00 per DLH 2. Applied overhead = $9.00 x 75,700 = $681,300 3. Applied overhead $681,300 Actual overhead 681,000 Overapplied overhead $ 300 4. Prime cost $957,000 Applied overhead 681,300 $1,638,300 / 400,000 = $4.10 (rounded) 5. 1. Predetermined overhead rate = $675,000/25,000 = $27 per MHr 2. 3. 4. Applied overhead = $27 x 25,050 = $676,350 Actual overhead Applied overhead Underapplied overhead Prime cost Applied overhead $681,000 676,350 $ 4,650 $957,000 676,350 $1,633,350 / 400,000 = $4.08 (rounded) 1 Problem 17.14 1. Journal Entries a. Raw Materials Accounts Payable b. Work in Process Overhead Control Raw Materials Supplies c. Work in Process Overhead Control Administrative Expenses Selling Expense Wages Payable d. Overhead Control e. f. g. h. i. j. k. l. Accumulated Depreciation Overhead Control Taxes Payable Overhead Control Prepaid Insurance Overhead Control Utilities Payable Selling Expense Advertising Payable Administrative Expense Selling Expense Accumulated Depreciation Administrative Expense Legal Fees Payable Work in Process Overhead Control *$6 x 8,000 = $48,000 Finished Goods Work in Process 43,500 43,500 35,000 12,200 35,000 12,200 60,000 20,000 18,000 9,000 107,000 8,500 8,500 450 450 6,200 6,200 6,200 6,200 5,000 5,000 1,500 650 2,150 750 750 48,000 * 48,000 135,000 135,000 2 2. Raw Materials Beg. Bal. 5,000 a. 43,500 End. Bal. 13,500 Finished Goods Beg. Bal. 60,000 l. 135,000 b. c. d. e. f. g. Overhead Control 12,200 20,000 8,500 450 6,200 6,200 k. 48,000 b. 35,000 Work in Process Beg. Bal. 30,000 b. 35,000 c. 60,000 k. 48,000 End. Bal. 38,000 l. 135,000 End. Bal.195,000 End. Bal. 5,550 * * Underapplied overhead 3 3. Bixby Products Pty. Ltd. Statement of Cost of Goods Manufactured For the Year Ended December 31, 19XX $12,200 20,000 8,500 450 6,200 6,200 $53,550 5,550 $35,000 60,000 Direct materials Direct labour Overhead Supplies Indirect labour Depreciation--Plant and equipment Property taxes Electricity--Factory Insurance Less: Underapplied overhead Overhead applied Manufacturing costs added Add: Beginning work in process Total manufacturing costs Less: Ending work in process Cost of goods manufactured 4. 48,000 $143,000 30,000 $173,000 38,000 $135,000 Cost of goods sold will increase by $5,550 if the overhead variance is all allocated to Cost of Goods Sold. 4 ...
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This note was uploaded on 03/19/2012 for the course ACCT 1511 taught by Professor Kim during the Three '10 term at University of New South Wales.

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