Determine the cost of the goods manufactured during april

Assignment Help Accounting Basics
Reference no: EM132013637

Problem - Nottaway Flooring produces custom-made floor tiles. The company's Raw Material Inventory account contains both direct and indirect materials. Until the end of April 2013, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations.

1. Raw material purchased on account, $204,000.

2. Direct material issued to Job #4263 cost $163,800; indirect material issued for that job cost $12,460. Direct material costing $1,870 was issued to start production of Job #4264.

3. Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct labor employees were paid $15 per hour.

4. Actual factory overhead costs incurred for the month totaled $68,700. This overhead consisted of $18,000 of supervisory salaries, $21,500 of depreciation charges, $7,200 of insurance, $12,500 of indirect labor, and $9,500 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued.

5. Overhead is applied to production at the rate of $18 per direct labor hour.

Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $4,300 and $11,400. Of the beginning WIP balance, $800 was related to Job #4263. Job #4263 was completed during April.

1. Prepare journal entries for Transactions 1-5.

2. Determine the balance in Raw Material Inventory at the end of the month.

3. Determine the balance in Work in Process Inventory at the end of the month.

4. Determine the cost of the goods manufactured during April. If completed goods consist of 10,000 similar units, what was the cost per unit?

5. What is the amount of underapplied or overappliedoverhead at the end of April?

Reference no: EM132013637

Questions Cloud

Hundreds of thousands of manufacturing jobs : At Examiner.com on February 23rd, 2011, Dave Paulson wrote: "Hundreds of thousands of manufacturing jobs were lost during Clinton's presidency
Determine the sales of audio video and car products : Problem - Multi-product CVP - Determine the sales of audio, video, and car products in the total sales amount calculated for part d
Mandating graphic health warnings on cigarette packages : Australia recently began requiring plain packaging and graphic health warnings on products produced by its $10 billion tobacco industry.
What is the simple payback period for project : What is the Simple Payback Period for this project (in years)?
Determine the cost of the goods manufactured during april : Determine the cost of the goods manufactured during April. If completed goods consist of 10,000 similar units, what was the cost per unit
What is the internal rate of return : What is the Internal Rate of Return (IRR) on this project (in %)?
Contract with lesha management : Advise Major Events whether it is bound by the contract with Lesha's management.
Describe financial accounting disclosures : Describe financial accounting disclosures required for nonprofit organizations and how these disclosures provide useful information to users
Compute the amount of accounts receivable reported : Compute the amount of accounts receivable reported on the company's budgeted balance sheet for June 30.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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