Chapter 17: 24E-c (page 945)
Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
c. Purchased raw materials on account, $24,000.
Date | Particulars | Debit ($) | Credit ($) |
Raw material inventory | 24,000 | ||
Accounts payable | 24,000 |
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Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
h. A company that bottles milk into one-gallon containers.
Selected cost data for Classic Print Co. are as follows:
Estimated manufacturing overhead cost for the year | $125,000 |
Estimated direct labor cost for the year | 78,125 |
Actual manufacturing overhead cost for the year | 116,000 |
Actual direct labor cost for the year | 67,000 |
Requirements
3. Use a T-account to determine the amount of underallocated or overallocated
manufacturing overhead.
Question: Smith Company expected to incur \(10,000 in manufacturing overhead costs and use 4,000 machine hours for the year. Actual manufacturing overhead was \)9,700, and the company used 4,250 machine hours.
9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base.
10. How much manufacturing overhead was allocated during the year?
Comparing actual to allocated overhead
Columbus Enterprises reports the following information at December 31, 2018:
Manufacturing overhead
3,500 | 50,600 |
19,000 | |
34,500 |
Requirements
2. What is the allocated manufacturing overhead?
If a company incurred \(5,250 in actual overhead costs and allocated \)5,575 to jobs, was the overhead overallocated or underallocated? By how much?
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