Bumbling Bamber Barns (BBB) produces and sells canned chicken a la king in response to specific...
Fantastic news! We've Found the answer you've been seeking!
Transcribed Image Text:
Bumbling Bamber Barns (BBB) produces and sells canned chicken a la king in response to specific orders. Summary data for the whole year follow. (The numbers are unrealistically small to simplify the computations so we can better focus on the concepts.) BBB produced 100 cases of chicken a la king, and sold 80 cases. They expected to produce 90 cases. BBB allocates manufacturing overhead based on chicken boning ladies' labor hours, and it should take 1hours per case. BBB predicted they would incur $6,075 of manufacturing overhead last year. BBB paid sales commissions of $1 per case, and executive salaries amount to $100. BBB has no beginning inventories. REQUIRED: A. Under actual costing, make the journal entries for the following summaries of the transactions that occurred throughout the year, and trace the cost flows through the T- accounts. 1) Sales commissions and executive salaries paid. 2) Invoices show that BBB purchased $6,000 of chicken and $100 of salt. (The saline content of the raw chicken varies, depending on the type of feed they ate.) 3) Material requisitions show that workers used $5,500 of chicken and $50 of salt. 8) 9) 7) 5) 6) Time cards show that the chicken-boning ladies worked 200 hours, while the janitors worked 20 hours. These hourly workers earn wages of $20 and $10 per hour. respectively. BBB received a $2,150 electric bill for the plant. The plant cost $91,125, 10 years ago. BBB depreciates the plant using the straight- line method, over 25 years, with no salvage value. On Jan. 1,BBB purchased a new chicken conveyor belt for $3,550. BBB depreciates the conveyor belt over a 10-year life, with no salvage value. BBB allocates manufacturing overhead. Workers finish all production - there is no ending WIP inventory. BBB sells 80 cases of "king" at $220 each. B. Material Inventory COGS MOH WIP Wages Payable How would the above analysis change under normal costing? FG Bumbling Bamber Barns (BBB) produces and sells canned chicken a la king in response to specific orders. Summary data for the whole year follow. (The numbers are unrealistically small to simplify the computations so we can better focus on the concepts.) BBB produced 100 cases of chicken a la king, and sold 80 cases. They expected to produce 90 cases. BBB allocates manufacturing overhead based on chicken boning ladies' labor hours, and it should take 1hours per case. BBB predicted they would incur $6,075 of manufacturing overhead last year. BBB paid sales commissions of $1 per case, and executive salaries amount to $100. BBB has no beginning inventories. REQUIRED: A. Under actual costing, make the journal entries for the following summaries of the transactions that occurred throughout the year, and trace the cost flows through the T- accounts. 1) Sales commissions and executive salaries paid. 2) Invoices show that BBB purchased $6,000 of chicken and $100 of salt. (The saline content of the raw chicken varies, depending on the type of feed they ate.) 3) Material requisitions show that workers used $5,500 of chicken and $50 of salt. 8) 9) 7) 5) 6) Time cards show that the chicken-boning ladies worked 200 hours, while the janitors worked 20 hours. These hourly workers earn wages of $20 and $10 per hour. respectively. BBB received a $2,150 electric bill for the plant. The plant cost $91,125, 10 years ago. BBB depreciates the plant using the straight- line method, over 25 years, with no salvage value. On Jan. 1,BBB purchased a new chicken conveyor belt for $3,550. BBB depreciates the conveyor belt over a 10-year life, with no salvage value. BBB allocates manufacturing overhead. Workers finish all production - there is no ending WIP inventory. BBB sells 80 cases of "king" at $220 each. B. Material Inventory COGS MOH WIP Wages Payable How would the above analysis change under normal costing? FG
Expert Answer:
Answer rating: 100% (QA)
Actual Costing Journal Entries 1 Sales Commission and ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these accounting questions
-
Fancy Foods Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following...
-
Huber and Sons uses job costing in a manufacturing setting. The firm began the month with $123 of work-in-process and completed jobs for which cost of goods sold was $1,233. A summary of this months...
-
Job-order costing in a manufacturing company Keeney Corporation makes custom-order furniture to meet the needs of disabled persons. On January 1, 2011, the company had the following account balances:...
-
A beam of light enters the end of an optic fiber as shown in Fig. 23-52. Show that we can guarantee total internal reflection at the side surface of the material (at point a), if the index of...
-
Morbidly obese women attending the Healthy Weigh diet clinic are weighed at program entry, to the nearest 10 lb. To join, the women must weigh at least 200 lb. Here are the women's weights. Weight...
-
Let a and b be two constants. Two lines L1 and L2 are given as follows: L = at, y=1-t,z=t+1,tR L2x=s,y=bs, z=s, sR (1) Suppose L1 and L2 are parallel. Find the values of a and b. (2) For the values...
-
A 6-cylinder, 4-stroke, single acting petrol engine develops \(50 \mathrm{~kW}\) brake power at \(4200 \mathrm{rpm}\) and brake thermal efficiency is \(22 \%\). The temperature and pressure at the...
-
Table shows a data set containing information for 25 of the shadow stocks tracked by the American Association of Individual Investors. Shadow stocks are common stocks of smaller companies that are...
-
For the following scenario, I need you to answer the following questions to. Be sure to cite the authority that supports your analysis for each question. Also, cite 2 scriptures in the Bible that...
-
Maggie's Magazines (MM) has straight nonconvertible bonds that currently yield 9%. MM's stock sells for $22 per share, has an expected constant growth rate of 6%, and has a dividend yield of 4%. MM...
-
Write a paper about documentation and evidence in accounting and auditing. Be sure to detail why we need it and how we get it. Do not get too technical; they do not understand accounting or auditing....
-
List the flavors of object orientation?
-
Which of the following is NOT a characteristic of an object? (a) Identity (b) Behavior (c) Action (d) State
-
Which methodologies are applied to object orientation?
-
When did object orientation come into the existence?
-
What are the two types of hierarchy available in object orientated approach?
-
5. Maria is designing a series of stationary trays for holding papers and envelopes. Each tray starts as a rectangular sheet of metal from which identical squares are cut from the four corners. The...
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
1. What is incentive compensation? 2. What is an intrinsic reward?
-
The nature of intrinsic and extrinsic rewards Do you believe that people value intrinsic rewards? Give an example of an intrinsic reward that you would value and explain why. Why are extrinsic...
-
Suppose that you are the owner/manager of a house-cleaning business. You have 30 employees who work in teams of three. Teams are dispatched to the homes of customers where they are directed by the...
-
Let \(A\) and \(B\) be disjoint events with \(P(A)=0.3\) and \(P(B)=0.45\). Determine the probabilities \(P(A \cup B), P(\overline{A \cup B}), P(\bar{A} \cup \bar{B})\), and \(P(\bar{A} \cap B)\).
-
Let \(P(A \cap \bar{B})=0.3\) and \(P(\bar{B})=0.6\). Determine \(P(A \cup B)\).
-
Check whether for 3 arbitrary random events \(A, B\), and \(C\) the following constellations of probabilities can be true: (1) \(P(A)=0.6, P(A \cap B)=0.2\), and \(P(A \cap \bar{B})=0.5\), (2)...
Study smarter with the SolutionInn App