Accounting Chapter 16
Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Job 356 $450 Job 357 $1,235 Job 358 $378 Job 359 $689 Job 360 $456 Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. What is the balance of Sales for Adams Company at the end of the first quarter?
$2685
Cavy Company estimates that total factory overhead costs will be $733,460 for the year. Direct labor hours are estimated to be 91,000. what is the predetermined factory overhead rate?
8.06
how to determine increase/decrease in net income
applied overhead - actual overhead --> positive number: increase, negative number: decrease
whats happening if there is a debit to finished goods and a credit to work in process
completed goods are transferred to finish goods
how to find factory overhead
factory overhead = predetermined factory overhead rate * direct labor hours
what's happening if there is a debit to work in process and a credit to factory overhead?
factory overhead is applied
what's happening if there is a debit to cost of goods sold and a credit to finished goods?
goods are sold
At the end of the year, overhead applied was $3,755,000. Actual overhead was $3,168,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to
increase 587,000
What are the two main types of cost accounting systems for manufacturing operations?
job order cost and process cost systems
Which of the following would be most likely to use process costing? a. custom furniture manufacturer b. law firm c. auto body repair shop d. lawn fertilizer manufacturer
lawn fertilizer manufacturer
how to find per unit cost
per unit cost = total cost / total units
how to find predetermined factory overhead rates
predetermined factory overhead rates = estimated total factory overhead costs / estimated direct labor hours
how do you find ending cost of goods sold
sum of all jobs completed
how do you find ending sales balance
sum of all jobs completed + profit on each job
Which of the following would most likely use a job order costing system? a. company that manufactures chlorine for swimming pools b. swimming pool installer c. paper mill d. oil refinery
swimming pool installer
how to find total product cost
total cost = direct materials + direct labor + factory overhead
what's happening if there is a debit to finished goods, work in process and cost of goods of sold and there is a credit to factory overhead
underapplied overhead is allocated
Winston Company estimates that the factory overhead for the following year will be $1,134,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 37,800 hours. The total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,652,000. What is the total factory overhead applied?
1,629,000
if job 567 has 1400 hours and the predetermined factory rate is $8.06, what is the factory overhead for the job?
11284
When Job 117 was completed, direct materials totaled $30,584; direct labor, $41,507; and factory overhead, $37,137. A total of 3,901 units were produced at a per-unit cost of
28
how to compute overapplied or underapplied factory overhead
actual factory overhead - applied factory overhead --> positive number: underapplied, negative number: overapplied
how do you journalize applied factory overhead?
debit : work in process - sum of all job factory overheads credit: factory overhead - sum of all job factory overheads
how to journalize closing entry for factory overhead if underapplied
debit: Cost of goods sold credit: factory overhead
how to journalize closing entry for factory overhead if overapplied
debit: factory overhead credit: cost of goods sold
Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the materials purchased on account is
debit: materials $190,000 credit: accounts payable $190,000
journal entry for Labor time tickets: Job 609, $1,600; $400 for supervision
debit: work in process 1600 debit: factory overhead 400 credit: wages payable 2000
Journal entry for Raw materials issued: Job 609, $850; for general use in factory, $600
debit: work in process 850 debit: factory overhead 600 credit: raw materials 1450
what's happening if there is a debit to work in process and a credit to wages payable?
direct and indirect labor costs are incurred
what happening if there is a debit to factory overhead and work in process and a credit to materials?
direct and indirect materials are being issued
