Reference no: EM13311380
StarMart manufactures skateboards. The company has a highly automated production process, so it allocates manufacturing overhead based on machine hours. StarMart expects to incur $240,000 of manufacturing overhead costs and to use 4,000 machine hours during 2012.
At the end of 2011, StarMart reported the following inventories:
During January 2012, StarMart actually used 300 machine hours and recorded the following transactions:
a. Purchased materials on account, $31,000.
b. Used direct materials, $39,000
c. Manufacturing labor cost incurred was $40,000; 90% direct labor and 10% indirect labor.
d. Used indirect materials, $3,000
e. Incurred other manufacturing overhead cost of $13,000 (credit Accounts Payable).
f. Allocated manufacturing overhead for January 2012.
g. Cost of completed skateboards, $99,000.
h. Sold $172,000 of skateboards on account; cost of skateboards sold, $91,400 (StarMart uses a
perpetual inventory system).
i. Operating expenses incurred, excluding depreciation was $42,000 and depreciation was $7,000.
?it is of utmost importance that each team member
?submits a copy of the assignment otherwise you will not receive a grade
?
Raw Materials Inventory
??
$20,000
Work in Process Inventory
??
$17,000
Finished Goods Inventory
$11,000
Requirements (round to one decimal place as needed):
1. Compute StarMart's predetermined manufacturing overhead rate for 2012 showing the entire equation with numerator and denominator in good form.
2. Create T accounts for the following accounts (a two column table can be used for T account): Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold, Manufacturing Overhead, Accounts Receivable, Sales, Accounts Payable and Wages Payable. Post the inventory balances and transactions to these accounts and calculate the ending balances.
3. Record the journal entry to close the ending balance of Manufacturing Overhead. Post your entry to the T-accounts
4. Was manufacturing overhead over/underapplied and by how much?
5. Prepare a Schedule of Cost of Goods Manufactured (in good form) for the month of January
6. Prepare a Schedule of Cost of Goods Sold (in good form) for the month of January
7. Prepare an Income Statement for the month of January (in good form). The company is in the 35% income tax bracket
|
Calculate the volume and temperature of the compressed air
: Consider a pump that is required to compress air in a factory. The cylinder in the pump has an inner diameter of 2.00 cm and length 60.0 cm. Calculate the volume and temperature of the compressed air
|
|
By how much does its pressure increase
: Imagine that we add 250 J of thermal energy to 1 liter (L)(1000cm^3) of air initially at room temperature and normal pressure. By how much does its pressure increase
|
|
A discount furniture store is about to open in the area
: A discount furniture store is about to open in the area served by Charlie's, and management is considering lowering prices in order to compete effectively.
|
|
What is the coefficient of kinetic friction
: A man is to pull a 50 .0 kg crate across a level terrain with a force of 50.0 N. What is the coefficient of kinetic friction, if the work done by friction is - 4.30 x 102 J
|
|
Prepare a schedule of cost of goods manufactured
: StarMart manufactures skateboards. The company has a highly automated production process, so it allocates manufacturing overhead based on machine hours. StarMart expects to incur $240,000 of manufacturing overhead costs and to use 4,000 machine..
|
|
What is the frequency of the vibrations
: A copper wire, 1 m long, has a density of 0.020 g/cm and vibrates in 4 segments when under tension produced by a 250 g hanging mass
|
|
What is the consolidated balance for the equipment account
: Parrett had equipment with a book value of $250,000 and a fair value of $400,000. Jones had equipment with a book value of $170,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2013..
|
|
How much electrical energy is stored in the battary
: A 1.5 V battery is rate at 1,800 milliamp hrs (mAh). How much electrical energy (in joules) is stored in the battery when it is new
|
|
Find the ratio of initial to the intensity of the light
: Unpolarized light passes through 5 parallel ideal polarizing filters. What is the ratio of the initial intensity to the final intensity of the light
|