Reference no: EM13863948
Berg-Warner Automotive uses job costing in which factory overhead is applied on the basis of direct labor cost. Any overapplied or underapplied overhead is considered material. The April 1 2013, balances in selected accounts are:
Inventories, April 1:
Materials (all direct) $124,000
Work in Process (Job 354) 113,400
Finished Goods (Job 243) 178,200
Job 354 was the only job in the manufacturing process at the end of March. Job 243 was completed during March but was not sold.
These transactions occurred in manufacturing during April 2013:
a. Direct Materials were purchased on account, $143,000
b. Materials were requisitioned for use in production:
Direct materials:
Job 354 - $23,000
Job 475 - Unkown
Job 523 - 72,500
Indirect materials 18,700
c. An analysis of labor time cards reveals the following labor usage for April:
Direct labor:
Job 354 - Unknown
Job 475 - $102,000
Job 523 - 36,500
Indirect labor 97,000
d. Depreciation of the factory building and equipment during April amounted to $76,000.
e. Rent for the warehouse was paid in cash, $6,500.
f. Insurance cost covering the factory operation was paid in cash, $11,000.
g. Other factory overhead costs amounted to $63,000.
h. $287,500 of factory overhead cost was applied to production on the basis of direct labor cost.
i. Job 354 and Job 475 were completed and transferred to the Finished Goods account. The balance of the Work In Process account on April 30, 2013 was $154,625.
j. Job 243 and Job 354 were sold on account during the month. The Cost of Goods Sold for these jobs was $520,475. The balance of the Finished Goods account on April 30 showed $254,875.
REQUIRED:
1. What was the amount of factory overhead applied to Job 523?
2. Calculate the firm’s predetermined factory overhead rate as a percentage of direct labor cost.
3. Complete the Cost of Goods Manufactured in April showing the Normal COGM?
4. What was the Direct Materials cost incurred in April to initiate and complete Job 475?
5. What was the Direct Labor cost incurred in April to complete Job 354?
6. What was the balance of Direct Materials account on April 30, 2013?
7. Calculate the amount of over applied or under applied overhead in April.
8. Prepare a journal entry to dispose of the over applied or under applied overhead.
Understanding the clients business and industry
: Consult Paragraphs 8-10 of PCAOB Auditing Standard No. 13. Comment on how your understanding of the inherent risks identified at Qwest ( in Question 2) would influence the nature, timing, and extent of your audit work at Qwest.
|
Why are open-end mutual fund investment companies suitable
: Why are open-end mutual fund investment companies suitable for the small individual investor? does the efficient market hypothesis suggest that an investor cannot outperform the market?
|
How many lens sets must be sold for company to break even
: Bright Eyes manufactures and sells two products. The first product is a disposable contact lens set that lasts about 3 months. The second product is a wetting solution. Customers of the first product use one bottle of solution each month. What level ..
|
Compare and contrast a bacterium with an animal cell
: Q1. Compare and contrast a bacterium with an animal cell based on their structure and function.BacteriaA cell membrane, usually surrounded by a cell wall and sometimes by an additional outer layer.An internal cytoplasm with ribosomes, a nuclear regio..
|
Factory overhead is applied on basis of direct labor cost
: Berg-Warner Automotive uses job costing in which factory overhead is applied on the basis of direct labor cost. Any overapplied or underapplied overhead is considered material. Calculate the firm’s predetermined factory overhead rate as a percentage ..
|
How much insurance does the company carry
: If a company pays an annual premium of $6,000 and the insurance company charges $40 per thousand dollars of insurance, how much insurance does the company carry?
|
Understanding of fraud risk assessment
: Consult Paragraphs 65-66 of PCAOB Standard No. 12 Based on your understanding of fraud risk assessment, what three conditions are likely to be present when a fraud occurs ( the fraud triangle)? Based on the information provided in the case, which of ..
|
Complete the data table
: Problem: Suppose you obtained the following data from doing the experiment described in the procedure. Complete the data table. The 25.00 mL of diluted HCI titrated in the experiments was prepared by diluting 25.00 mL of a stock solution to 250.00..
|
Science behind why human eyes come in so many colors
: science behind why human eyes come in so many colors
|