Exam 25: Manufacturing Accounting

The following data are available for Jackson Company. Annual estimated manufacturing overhead \7 0,000 Actual manufacturing overhead in May 16,200 Annual estimated direct labor hours 25,000 Actual direct labor hours in May 5,700 Required: a.Compute the predetermined rate based on direct labor hours. b.Prepare the journal entry to record the applied overhead for the month of May.

Given the following accounts: [1]Expense accounts. [2]Accounts receivable [3]Finished goods inventory. [4]Work in process inventory. [5]Raw materials inventory. [6]Factory supplies inventory. [7]Overhead applied [8]Accumulated depreciation factory equipment [9]Accounts payable. [10]Payroll [11]Utilities payable [12]Sales. [13]Raw materials purchases. [14]Overhead-control. [15]Cost of goods sold. Indicate the account(s) to be debited and credited to record the following transactions. -Purchased raw materials on account. Debit ________ & ________ & ________ Credit ________ & ________ & ________

If direct labor for the month is $30,000,overhead is applied based on direct labor,annual overhead is estimated to be $500,000,and annual direct labor is estimated to be $800,000,what is the entry to apply overhead to production?

All expenses are listed on the income statement of a manufacturer.

Finished goods inventory includes the total costs of manufacturing a product.

If direct labor for the month is $40,000,overhead is applied based on direct labor,annual overhead is $600,000,and annual direct labor is $1,000,000,what is the entry to charge direct labor to production?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Factory equipment

From the following transactions,prepare the appropriate general journal entries for the month of April. a.Raw materials costing $60,000 were issued from the storeroom. b.Direct labor of $53,000 was charged to production. c.Indirect labor costs of $17,000 were incurred. d.Overhead was applied at the rate of 40% of direct labor dollars. e.Completed products costing $42,000 were transferred to finished goods. f.Products costing $32,000 were sold.

The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.

Given the following accounts: [1]Expense accounts. [2]Accounts receivable [3]Finished goods inventory. [4]Work in process inventory. [5]Raw materials inventory. [6]Factory supplies inventory. [7]Overhead applied [8]Accumulated depreciation factory equipment [9]Accounts payable. [10]Payroll [11]Utilities payable [12]Sales. [13]Raw materials purchases. [14]Overhead-control. [15]Cost of goods sold. Indicate the account(s) to be debited and credited to record the following transactions. -Sold products on account. Debit ________ & ________ & ________ Credit ________ & ________ & ________

There was no accrual for the direct labor at the end of the year.This error will cause:

Estimated manufacturing overhead costs were $40,000 and the number of estimated machine hours was 10,000.Actual overhead costs were $40,500 and the actual number of machine hours used was 10,200.Based on machine hours,the overhead application rate per hour is:

Overhead may be applied based on direct labor hours or machine hours.

Direct labor includes the wages of:

Which inventory account consists of products currently being processed?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Raw materials inventory

Given the following accounts: [1]Expense accounts. [2]Accounts receivable [3]Finished goods inventory. [4]Work in process inventory. [5]Raw materials inventory. [6]Factory supplies inventory. [7]Overhead applied [8]Accumulated depreciation factory equipment [9]Accounts payable. [10]Payroll [11]Utilities payable [12]Sales. [13]Raw materials purchases. [14]Overhead-control. [15]Cost of goods sold. Indicate the account(s) to be debited and credited to record the following transactions. -Transferred completed products to finished goods. Debit ________ & ________ & ________ Credit ________ & ________ & ________

During the week ended November 30,total factory payroll incurred was $6,000.Of this total,80% was for direct labor.The entry to record the payroll distribution would include:

When actual costs are not known until the end of the month,an estimated application rate should be determined so that the total weekly costs can be applied.

Calculate the cost of goods sold when beginning finished goods inventory equals $70,000,ending finished goods inventory $85,000,and cost of goods manufactured $600,000.