Question
Company x Ltd. is applying individualized costing per work, had 2 unfinished projects on 1/1/2019. Work...
Company x Ltd. is applying individualized costing per work, had 2 unfinished projects on 1/1/2019.
Work A (85.000)
Work B (47.000)
Company allocates the general industrial cost based on machine hours. The budgeted general industrialized cost and the machine hours were expected to be: EUR 850.000 and 17.000 machine hours respectively. Company executed 3 works the first quarter. The direct cost, direct work and machine hours used are shown below.
| Work | Direct Materials | Direct Labor | Machine hours |
| A | 22,000 | 43,000 | 700 |
| B | ---------- | 23,000 | 500 |
| C | 32,000 | 48,000 | 1100 |
The real general industrialized cost for the quarter consists of indirect work EUR 40.000, indirect material EUR 14.000 and various factory costs EUR 105.000, all paid via check, and machines depreciation EUR 19.000. Company completed work A and B. Work sold and paid via cheque with certain price and profit EUR 29.700 to the company.
Α.Calculate the predefined allocation rate of General Industrialized Cost of production.
B. Prepare the accounting entries on 31/3 for the recording of the following:
• Usage of direct labor and materials in production (2 entries)
• Real general industrialized cost for the quarter
• Allocation of general industrialized cost in production
• Completion of work A and B
• Sale of work A
• Assuming that for work B the general industrialized cost is EUR 30.000, is there an over or sub- allocation of general industrialized cost for the specific work. Prepare the entry related to the over or sub-allocation
Homework Answers
Answer #1
Over applied 5,000
Not the answer you're looking for?
Similar Questions
Entries and Schedules for Unfinished Jobs and Completed Jobs Mellow Company uses a job order cost...
Entries and Schedules for Unfinished Jobs and Completed Jobs
Mellow Company uses a job order cost system. The following data
summarize the operations related to production for April, the first
month of operations:
Materials purchased on account, $3,170.
Materials requisitioned and factory labor used:
Job No.
Materials
Factory Labor
101
$3,030
$3,160
102
3,700
4,270
103
2,450
2,090
104
8,300
7,840
105
5,270
5,970
106
3,850
3,790
For general factory use
1,030
4,680
Factory overhead costs incurred on account, $5,790....
Southwestern Fashions, Inc. which uses a job-order costing system, had two jobs in process at the...
Southwestern Fashions, Inc. which uses a job-order costing
system, had two jobs in process at the start of the year: job no.
101 ($84,100) and job no. 102 ($53,500). The following information
is available:
a.
The company applies manufacturing overhead on the basis of
machine hours (based on practical capacity). Budgeted overhead and
machine activity for the year were anticipated to be $824,000, and
16,000 hours, respectively.
b.
The company worked on four jobs during the first quarter. Direct...
Baskin Company uses a job-order costing system to manufactures large tiger cages for exotic pet owners....
Baskin Company uses a job-order costing system to manufactures
large tiger cages for exotic pet owners. On January 1, the
beginning of the current year, the company’s inventory balances
were as follows: Raw materials $ 22,500 Work in process $ 12,600
Finished goods $ 31,300
Baskin Company applies overhead cost to jobs on the basis of
machine-hours. For the current year, the company estimated that it
would work 37,300 machine-hours and incur $154,795 in manufacturing
overhead cost. The following transactions...
X Company has two production departments, A and B. At the start of 2019, the following...
X Company has two production departments, A and B. At the start
of 2019, the following budgeted cost information was
available:
Overhead
Department A
$520,000
Department B
$190,000
The following activity information is for X Company's only two
jobs, Job 11 and Job 22, both of which were started and completed
during the year:
Job 11
Job 22
Direct labor hours in Department A
1,750
912
Direct labor hours in Department B
214
1,114
Total direct labor
hours
1,964
2,026 ...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products
manufactures various machined parts to customer specifications. The
company uses a job-order costing system and applies overhead cost
to jobs on the basis of machine-hours. At the beginning of the
year, the company used a cost formula to estimate that it would
incur $4,297,500 in manufacturing overhead cost at an activity
level of 573,000 machine-hours.
The company spent the
entire month of January working on a large order for 12,300
custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer
specifications. The company uses a job-order costing system and
applies overhead cost to jobs on the basis of machine-hours. At the
beginning of the year, the company used a cost formula to estimate
that it would incur $4,267,500 in manufacturing overhead cost at an
activity level of 569,000 machine-hours.
The company spent the entire month of January working on a large
order for 12,400 custom-made machined parts. The company had no
work...
Findlay Company uses a job-order costing system. The following data relate to the month of October,...
Findlay Company uses a job-order costing system. The following
data relate to the month of October, the first month of the
company’s fiscal year:
10/1 Raw materials purchased on account, $
210,000.
10/7 Raw materials issued to production, $
190,000. ( 80% direct and 20%
indirect)
10/8 Direct labor cost issued to production,
$49,000; and indirect labor cost incurred
$21,000)
10/22 The company applies manufacturing overhead cost to
production on the
...
Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 units...
Alpha Company had the following information for FY 2017: Work in
Process - 1/1/17 100,000 units Units Started into Production
575,000 units Work in Process - 12/31/17 75,000 units Direct
Material put into Production $575,000 Direct Labor put into
Production $843,750 The beginning work in process was 100% complete
as to direct materials and 75% complete as to conversion costs. The
ending work in process was 100% complete as to direct materials and
50% complete as to conversion costs. The...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The
following transactions occurred in October:
Raw materials purchased on account, $211,000.
Raw materials used in production, $190,000 ($152,000 direct
materials and $38,000 indirect materials).
Accrued direct labor cost of $49,000 and indirect labor cost of
$21,000.
Depreciation recorded on factory equipment, $105,000.
Other manufacturing overhead costs accrued during October,
$129,000.
The company applies manufacturing overhead cost to production
using a predetermined rate of $7 per machine-hour. A total of
76,300 machine-hours...
New Junior Company is a manufacturing firm that uses Job-Order costing system. On January 1, the...
New Junior Company is a manufacturing firm that uses Job-Order
costing system. On January 1,
the beginning of the current year, the company’s inventory balances
were as follows:
Raw materials $13’700
Work in process 44’000
Finished goods 32’400
The company applies cost to jobs on the basis of machine hours.
For the current year, the
company estimated that it would work 32’500 machine hours and incur
$151’000 in
manufacturing overhead costs. The following transactions were
recorded for the year:
a....
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 3 minutes ago
asked 9 minutes ago
asked 22 minutes ago
asked 25 minutes ago
asked 27 minutes ago
asked 31 minutes ago
asked 37 minutes ago
asked 39 minutes ago
asked 51 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago