Accounting Principles 10th edition P20-1 A_P21-6A_BE 20-5_BE 20-6 BE 20-7 Answer

Accounting Principles 10th edition P20-1 A_P21-6A_BE 20-5_BE 20-6_BE 20-7_Question

BE20-5) Data pertaining to job cost sheets for Alomar Tool & Die are given in BE20-3 and BE20-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing Overhead.)

BE20-6) Formu Company estimates that annual manufacturing overhead costs will be $800,000. Estimated annual Operating activity bases are: direct labor cost $500,000, direct labor hours 50,000 and machine hours 100,000. Compute the predetermined overhead rate for each activity base.

BE20-7) During the first quarter, McKay Company incurs the following direct labor costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 90% of direct labor cost.

P20-1A) Bynum Manufacturing uses a job order cost system and applies overhead to production on the basis of direct
Problem 20-1A

Bynum Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2012, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.

During the month of January, Bynum Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred factory labor costs of $65,000. Of this amount, $16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense on equipment $19,000; and various other manufacturing overhead costs on account $20,000.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,000 $5,000
51 39,000 25,000
52 30,000 20,000

Your answer is correct.

Calculate the predetermined overhead rate for 2012, assuming Bynum Manufacturing estimates total manufacturing overhead costs of $1,050,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year.

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.
Prepare the journal entries to record the purchase of (a) raw materials, the (b) factory labor costs incurred, and the (c) manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the journal entries to record the assignment of (a) direct materials, (b) direct labor, and (c) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in part (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entry (or entries) to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entry (or entries) to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

What is the balance in the Finished Goods Inventory account at the end of the month?

What is the amount of over- or underapplied overhead?

P21-6A) Martine Processing company uses a weighted-average process costing system and manufactures a single product – a premium rug shampoo and cleaner. the manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the mixing and cooking department is shown below.

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Accounting Principles 10th edition P20-1 A_P21-6A_BE 20-5_BE 20-6 BE 20-7 Answer