(S. Sridhar, adapted) Keezel Company uses normal costing in its job-costing system. Partially completed T-accounts and additional...

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(S. Sridhar, adapted) Keezel Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Keezel for 2017 are as follows:

(S. Sridhar, adapted) Keezel Company uses normal costing in its

Additional information follows:
a. Direct manufacturing labor wage rate was $15 per hour.
b. Manufacturing overhead was allocated at $20 per direct manufacturing labor-hour.
c. During the year, sales revenues were $1,550,000, and marketing and distribution costs were $810,000.
Required
1. What was the amount of direct materials issued to production during 2017?
2. What was the amount of manufacturing overhead allocated to jobs during 2017?
3. What was the total cost of jobs completed during 2017?
4. What was the balance of work-in-process inventory on December 31, 2017?
5. What was the cost of goods sold before proration of under- or overallocated overhead?
6. What was the under- or overallocated manufacturing overhead in 2017?
7. Dispose of the under- or overallocated manufacturing overhead using the following:
a. Write-off to Cost of Goods Sold
b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished
Goods Control, and Cost of Goods Sold
8. Using each of the approaches in requirement 7, calculate Keezel's operating income for 2017.
9. Which approach in requirement 7 do you recommend Keezel use? Explain your answer briefly.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For  answer-question

Horngrens Cost Accounting A Managerial Emphasis

ISBN: 978-0134475585

16th edition

Authors: Srikant M. Datar, Madhav V. Rajan

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