Because the Beckworth Company used a budeeted lndicect cost allocation rate for its manufacturing operations, the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Because the Beckworth Company used a budeeted lndicect cost allocation rate for its manufacturing operations, the amount allocated ($190,000) was disferent from the actual amount incurred ($175,000). These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts, Before disposition of under/overallocated overhead, the following information was available: Overhead Allocated Included Sil $12,000 $27,000 $163,000 Account Direct materials WIP Finished goods Cost of goods sold Balance $50,000 $165,000 $219,000 $492,000 a) What is the journal entry Beckworth Company should use to write-off the difference between allocated and actual overhead directly to cost of goods sold? b) What is the journal entry Beckworth Company should use to write-off the difference between allocated and actual overhead using the proration approach based on overhead allocated? Because the Beckworth Company used a budeeted lndicect cost allocation rate for its manufacturing operations, the amount allocated ($190,000) was disferent from the actual amount incurred ($175,000). These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts, Before disposition of under/overallocated overhead, the following information was available: Overhead Allocated Included Sil $12,000 $27,000 $163,000 Account Direct materials WIP Finished goods Cost of goods sold Balance $50,000 $165,000 $219,000 $492,000 a) What is the journal entry Beckworth Company should use to write-off the difference between allocated and actual overhead directly to cost of goods sold? b) What is the journal entry Beckworth Company should use to write-off the difference between allocated and actual overhead using the proration approach based on overhead allocated?
Expert Answer:
Answer rating: 100% (QA)
Answer Manufacturing overhead allocated 190000 Manufacturing overhead incurre... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Posted Date:
Students also viewed these accounting questions
-
The Mona chino Manufacturing Company has the following budgeted overhead cost and other data for its machining department for the month of December: Budgeted Data: Indirect labor and supplies .....
-
The Lawson Manufacturing Company has the following budgeted overhead cost and other data for its assembly department for the month of April: Budgeted Data: Indirect labor and supplies . $170,000...
-
1/ You just started working and you planned to save $5,000 every year in your retirement account. How much money will you have in your retirement account once you retire in 40 years? Your retirement...
-
Why study the theory of perfect competition if no real-world market completely satisfies all of the theorys assumptions?
-
Determine the magnitude and direction of the resultant FR = F1 + F2 + F3 of the three forces by first finding the resultant F' = F1 + F2 and then forming FR = F' + F3. Given: F1 = 30 N F2 = 20 N F3 =...
-
In a 1975 contract, Eureka was given the exclusive right to sell spring water and other products under the Ozarka trade name in 60 Oklahoma counties in exchange for \($9,000\) paid to Arrowhead,...
-
As we discussed at the beginning of the chapter, Starbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might appear to be very similar, they...
-
The number of admissions to all types of hospitals in a country between 1989 and 1996 can be described by the function A(t) = 35.283t2-1053.78t+40,539.967 thousand people where t is the number of...
-
Flosun plc makes and sells a range of products. Management has carried out an analysis of the total cost of production. The information in Appendix 3.1 reflects this analysis of budgeted costs for...
-
Question 1 Chill Products manufactures smart thermostats for home climate control (HVAC) systems. One of its products, the Hello Home model, sells for $75.00 and has manufacturing costs given in the...
-
Alexia's sister is also in the industry; in fact, she is the local sales manager for a training company that will be a top contender for the job. Since Alexia has a family member and friends who work...
-
Outlined the benefits and challenges to organizations implementing work-life policies. An organization can create policies, but cultural change requires more than just a change in policy. As your...
-
Create a diagram of a job order cost system or a process cost system. Choose a product that you will manufacture and describe the manufacturing process for it using a flow chart or mind map. The...
-
Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing $169,600.00 4 Selling 16,960.00 5 Administrative...
-
Discuss the strategic importance of forecasting at your organization (or in one with which you are familiar). Provide two examples of ways that forecasting could improve organizational processes or...
-
Describe flaws in an argument ( 2-4 sentences only ) "The more modern anthropologists learn about Australian Aboriginal civilization, the better they understand its intellectual achievements....
-
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
-
As indicated in the Real-World Focus (RWF) item on page XXX, consumers (including businesses and local governments) interested in using solar power generally have an option to purchase or to lease...
-
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system product A has been assigned overhead of $10.80 per unit while...
-
The management of office printing, duplicating, filing, and overall document storage is one of the most significant overhead costs in many companies, especially companies with large and complex...
-
Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade deficit. The goal of policy is to reduce the trade deficit and leave the level of...
-
Flexible exchange rates and foreign macroeconomic events Consider an open economy with flexible exchange rates. Let UIP stand for the uncovered interest parity condition. a. In an IS-LM-UIP diagram,...
-
We showed that a reduction in the interest rate in an economy operating under flexible exchange rates leads to an increase in output and a depreciation of the domestic currency. a. How does the...
Study smarter with the SolutionInn App