marks) Lismore Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Work-in-process inventory (January 1) $ 140,400 Work-in-process inventory (March 31) 171,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manufacturing labor 480,000 Indirect manufacturing labor 186,000 Property taxes on manufacturing plant building
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PROBLEM 3-46 (35 MINUTES) 1. Predetermined overhead rate = budgeted overhead ÷ budgeted direct-labor cost = $5,460,000 ÷ $4,200,000 = 130% of direct labor cost 2. Additions (debits) total $15,605,000 [$5,600,000 + $4,350,000 + ($4,350,000 x 130%)]. 3. The finished-goods inventory consisted of job no. 2143, which cost $351,500 [$156,000 + $85,000 + ($85,000 x 130%)]. 4. Since there is no work in process at year-end, all amounts in the Work-in-Process account must be
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motivating C) Controlling D) Decision making 4. Ideally, how many units should be produced in a just-in-time manufacturing system? A) budgeted customer demand for the current week. B) budgeted customer demand for the following week. C) actual customer demand for the current week. D) maximum production capacity for the current week. 5. After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system. At the beginning of this switch, Jammu
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4. It is more difficult to account for the inventory of a manufacturing firm than for a merchandising firm because the former has three different types of inventories; raw materials, work in process, and finished goods. In addition, the work in process and finished goods inventories are composed of raw materials, labor, and manufacturing overhead. Often it is difficult to measure the amount of labor and manufacturing overhead that should be included in the inventory amounts. 5. Purchase
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Cost Accounting (Assignment – 1) Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University, Islamabad Fall Semester 2012 Course: Course Instructor: Class: Cost Accounting Wasim Abbas Shaheen BBA – III (A) Assignment No 1: Instructions for Assignment: This is an individual assignment. The assignment should be hand written. All the students are advised to submit their assignments on maximum 14th of October, 2012 (Monday). There will be no late submission of the assignments. The assignments
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| | |Use the information below to answer the following question(s). | | |Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to | | |allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the | | |coming year for the company and for the Winfield High School
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underapplied or overapplied overhead)? 6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost? SOLUTION:
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CHAPTER 2 Accounting for Materials Review Summary 1. Materials control includes physical control of materials and control over the investment in materials. Effective physical control of materials involves limiting the access to stored materials, segregating the duties of employees who handle materials and materials reports, and establishing an accurate recording system for materials purchases and issues. Only authorized personnel should be permitted in material storage areas, and procedures
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applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $322,000 of overhead costs are incurred and 130,000 hours are used. Instructions (a) Compute the manufacturing overhead rate for the year. (b) What is the amount of under-or overapplied overhead at December 31? (c) Prepare the adjusting entry to assign the under-or overapplied overhead for the year
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Predetermined Overhead Rate Finlon Upholstery, Inc. applies manufacturing overhead to production on the basis of direct labor cost. The 2002 budget shows direct labor (DL) cost at $4,200,000 and manufacturing overhead (MOH) cost at $5,460,000. To calculate the predetermined overhead rate, divide the budgeted MOH by the budgeted DL ($5,460,000 ÷ $4,200,000) to arrive at 130%. Work-in-process Additions Work-in-process inventory includes direct material (DM), direct labor (DL) and manufacturing overhead
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