Kellogg Machines Limited (KML) manufactures specifically designed machines that are custom ordered by food manufacturing businesses....

 

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Kellogg Machines Limited (KML) manufactures specifically designed machines that are custom ordered by food manufacturing businesses. The company uses a job costing system to account for its production costs. The predetermined factory overhead rate is calculated based on direct labour costs and KML uses it as a basis to apply factory overhead to all machines produced. Information during January 2021 are as follows for the 3 machines that are in production (Machine A, Machine B, and Machine C): January 1, January 31, 2021 2021 Inventories Direct Materials $38,000 Work-in-Process 44,000 ? Finished Goods Cost of Goods Sold Direct materials 70,000 purchased in July Materials issued to production: Machine A $18,180 Machine B 36,220 Machine C 14,750 Factory labor hours used ($30/hour): 4,250 Machine A hours 3,550 Machine B hours 2,350 Machine C hours 7,650 Indirect labor hours Other factory overhead costs incurred: Rent $139.000 Utilities 839,850 Repairs and maintenance 196,000 Depreciation 138,600 Other 63,500 At the end of January (January 31, 2021), Machine A was sold, and Machine B and Machine C are both still in process of production. Total factory overhead applied in January 2021 was $1,613,850. Required: 1. Calculate the predetermined factory overhead rate (POHR) for Kellogg Machines Limited. 2. Calculate the actual factory overhead cost incurred during the month of January 2021 for Kellogg Machines Limited. 3. Calculate the ending balance of Work-in-Process Inventory for January 2021 for Kellogg Machines Limited. 4. Prepare in good form the Statement of Cost of Goods Manufactured for January 2021 for Kellogg Machines Limited. Ensure the statement has the appropriate headings. 5. Was overhead overapplied or underapplied for January 2021 and by how much? Prepare the journal entries to dispose of the overapplied/underapplied overhead to Cost of Goods Sold. 6. Prepare the Statement of Cost of Goods Sold for January 2021 for Kellogg Machines Limited. Kellogg Machines Limited (KML) manufactures specifically designed machines that are custom ordered by food manufacturing businesses. The company uses a job costing system to account for its production costs. The predetermined factory overhead rate is calculated based on direct labour costs and KML uses it as a basis to apply factory overhead to all machines produced. Information during January 2021 are as follows for the 3 machines that are in production (Machine A, Machine B, and Machine C): January 1, January 31, 2021 2021 Inventories Direct Materials $38,000 Work-in-Process 44,000 ? Finished Goods Cost of Goods Sold Direct materials 70,000 purchased in July Materials issued to production: Machine A $18,180 Machine B 36,220 Machine C 14,750 Factory labor hours used ($30/hour): 4,250 Machine A hours 3,550 Machine B hours 2,350 Machine C hours 7,650 Indirect labor hours Other factory overhead costs incurred: Rent $139.000 Utilities 839,850 Repairs and maintenance 196,000 Depreciation 138,600 Other 63,500 At the end of January (January 31, 2021), Machine A was sold, and Machine B and Machine C are both still in process of production. Total factory overhead applied in January 2021 was $1,613,850. Required: 1. Calculate the predetermined factory overhead rate (POHR) for Kellogg Machines Limited. 2. Calculate the actual factory overhead cost incurred during the month of January 2021 for Kellogg Machines Limited. 3. Calculate the ending balance of Work-in-Process Inventory for January 2021 for Kellogg Machines Limited. 4. Prepare in good form the Statement of Cost of Goods Manufactured for January 2021 for Kellogg Machines Limited. Ensure the statement has the appropriate headings. 5. Was overhead overapplied or underapplied for January 2021 and by how much? Prepare the journal entries to dispose of the overapplied/underapplied overhead to Cost of Goods Sold. 6. Prepare the Statement of Cost of Goods Sold for January 2021 for Kellogg Machines Limited.

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Req1 Predetermied Overhead rate Total overhead applied 1613850 Machine machine A machine B ... View the full answer