T Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead...

Transcribed Image Text:

T Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead rate based on machine-hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the current year as follows. Machine-hours Variable overhead costs Fixed overhead costs Total overhead 202,500 $ 769,500 1,870,500 The expected volume is 215,000 machine-hours for the entire year. The following information is for March, when Jobs 302 and 304 were completed: Inventories, March 1 Raw materials and supplies. Work in process (Job 302) Finished goods Purchases of raw materials and supplies Raw materials Machine-hours (191) Job 302 Job 304 215,000 $ 817,000 1,870,500 $ 2,640,000 $ 2,687,500 $ 2,868,000 Supplies Materials and supplies requisitioned for production Job 302 Job 304 Job 305 Supplies Job 305 Direct labor-hours (OLH) Job 102 Job 304 Job 305 Labor costs 262,500 $997,500 1,870,500 Direct labor wages (all hours @ $35.00) Indirect labor wages (1,100 hours) Supervisory salaries Building occupancy costs (heat, light, depreciation, etc.) $ 93,500 198,800 499, 300 $1,363,700 177,000 $.626,000 530,000 124,200 35,100 $1,316,100 6,700. 6,600 4,000 101 9,200 OLH 4,000 DLH 2,400 DLH $546,000 19,800 29,700 4 JUU 204 Job 305 Labor costs Direct labor wages (all hours @ $35.00) Indirect labor wages (1,100 hours) Supervisory salaries Building occupancy costs (heat, light, depreciation, etc.) Factory facilities Sales and administrative offices Factory equipment costs Power Repairs and maintenance : Other c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $1,710,000 2,656,500 966,000 20,527,500 4,900 ULA 2,400 DLH $546,000 19,800 29,700 Required: a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b) through [, as needed.) b. Compute the total cost of Job 302 when it is finished. Complete this question by entering your answers in the tabs below. $ 30,000 32,200 $ 48,300 17,900 23,700 $ 89,900 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machines this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Balance $ 1,710,000 2,656,500 966,000 20,527,500 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. Predetermined overhead rate por machine hour Required A Required B > nces year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the total cost of Job 302 when it is finished. The total cost of Job 302 Required D Required A Required E Required F Required C > ences yco. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How much of factory overhead cost was applied to Job 305 during March? Factory overhend cost of Job 305 < Required B Required E Required F Required D > (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [. as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $ 1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What total amount of overhead was applied to jobs during March? Amount of applied overhead < Required C Required f Required E > year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $ 1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold i Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute actual factory overhead incurred during March. Actual factory overhead Required D < Required D Required E Required F Required F > D. Compute une total cust UI JUU JUZ WHEN I IS SHEU. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $ 1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold < Required E Required > T Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined overhead rate based on machine-hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the current year as follows. Machine-hours Variable overhead costs Fixed overhead costs Total overhead 202,500 $ 769,500 1,870,500 The expected volume is 215,000 machine-hours for the entire year. The following information is for March, when Jobs 302 and 304 were completed: Inventories, March 1 Raw materials and supplies. Work in process (Job 302) Finished goods Purchases of raw materials and supplies Raw materials Machine-hours (191) Job 302 Job 304 215,000 $ 817,000 1,870,500 $ 2,640,000 $ 2,687,500 $ 2,868,000 Supplies Materials and supplies requisitioned for production Job 302 Job 304 Job 305 Supplies Job 305 Direct labor-hours (OLH) Job 102 Job 304 Job 305 Labor costs 262,500 $997,500 1,870,500 Direct labor wages (all hours @ $35.00) Indirect labor wages (1,100 hours) Supervisory salaries Building occupancy costs (heat, light, depreciation, etc.) $ 93,500 198,800 499, 300 $1,363,700 177,000 $.626,000 530,000 124,200 35,100 $1,316,100 6,700. 6,600 4,000 101 9,200 OLH 4,000 DLH 2,400 DLH $546,000 19,800 29,700 4 JUU 204 Job 305 Labor costs Direct labor wages (all hours @ $35.00) Indirect labor wages (1,100 hours) Supervisory salaries Building occupancy costs (heat, light, depreciation, etc.) Factory facilities Sales and administrative offices Factory equipment costs Power Repairs and maintenance : Other c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $1,710,000 2,656,500 966,000 20,527,500 4,900 ULA 2,400 DLH $546,000 19,800 29,700 Required: a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b) through [, as needed.) b. Compute the total cost of Job 302 when it is finished. Complete this question by entering your answers in the tabs below. $ 30,000 32,200 $ 48,300 17,900 23,700 $ 89,900 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machines this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Balance $ 1,710,000 2,656,500 966,000 20,527,500 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. Predetermined overhead rate por machine hour Required A Required B > nces year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the total cost of Job 302 when it is finished. The total cost of Job 302 Required D Required A Required E Required F Required C > ences yco. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How much of factory overhead cost was applied to Job 305 during March? Factory overhend cost of Job 305 < Required B Required E Required F Required D > (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [. as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $ 1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What total amount of overhead was applied to jobs during March? Amount of applied overhead < Required C Required f Required E > year. (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $13.50 per machine-hour. Use this amount in answering requirements [b] through [, as needed.) b. Compute the total cost of Job 302 when it is finished. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $ 1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold i Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute actual factory overhead incurred during March. Actual factory overhead Required D < Required D Required E Required F Required F > D. Compute une total cust UI JUU JUZ WHEN I IS SHEU. c. How much of factory overhead cost was applied to Job 305 during March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Sorrento Products had the following account balances: Balance $ 1,710,000 2,656,500 966,000 20,527,500 Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Show the overapplied overhead effect on the account balances (final balances after allocation) in the following table. Overapplied overhead Work-in-process inventory Finished goods inventory Cost of goods sold < Required E Required >

Answer rating: 100% (QA)

SOLUTION To answer your questions lets calculate the required values step by step a Compute the predetermined overhead rate combined fixed and variable to be used to apply overhead to individual jobs ... View the full answer