Assignment help , Managerial Accounting

Excercise 2-5
Granger products had the following transactions for the just completed month. The company had no beginning inventories.

a)$75,000 in raw materials were purchased for cash.
b) $73,000 in raw materials were requisionted for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.
c) Total labor wages of 152,000 were incurred and paid. Of this amount, 134,000 was for direct labor and the remainder for indirect labor.
d) additional manufacturing overhead costs of 126,000 were incurred and paid.
e) manufacturing overhead costs of 178,000 were applied to jobs using the company''s predetermined overhead rate.
f) all of the jobs in progress at the end of the month were completed and shipped to customers.
g) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:
1) Post above transactions to T-Accounts
2) Determine the cost of goods sold for the period.

Excercise 2-7
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. this predetermined rate was based on a cost forumla that estimated $171,200 of total manufacturing overhead for an estimated activity level of 8,000 direct labor hours.

The company incurred actual total manufacturing overhead costs of 172,500 and 8,250 total direct labor hours during the period.

1) Determine the amount of underapplied or overapplied manufacturing overhead for the period
2) Assuming that the entire amount of the underapplied or overapplied overhead is closed out to Cost of Goods Sold, what would be the effect of the underapplied or overapplied overhead on the company''s gross margin for the period?

Posted Date: 9/26/2012 11:20:34 PM | Location : United States







Related Discussions:- Assignment help , Assignment Help, Ask Question on Assignment help , Get Answer, Expert's Help, Assignment help Discussions

Write discussion on Assignment help
Your posts are moderated
Related Questions
a certain company makes 3 products A,B and C and they use the same raw material zhong.details about each product is as follows.production units are 10 000 for A,8 000 for B,12 000

Explain the Types of standards The following is the brief description of various types of standards: 1) Basic standards: these are the standards which are assumed to remai

A company is preparing a value in use calculation for a factory building and the equipment used to make a particular product. It has prepared cash flows for the next five years fro

Bulk Agency Factoring : In this category factoring is essentially used as a method of financing book debts. In this sort of factoring the client continues to administer credit a

I am to write thesis on Budget and Budgetary Contro. Can you please help me with contents and notes?

identify and explain the many classification of costs for planning, control,performance evaluation and decision making.

LIMITATIONS OF ABC ANALYSIS However ABC analysis is a basic tool for exercising selective control over many inventory items, it does not, in its current form, allow precise con

Coleman, a married taxpayer, is going to establish a manufacturing business. He anticipates that the business will be profitable immediately due to a patent he holds. He predicts t


Advantage of relevant cost