The following information, taken from the books of Nicholas Company, represents the operations for the month of

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The following information, taken from the books of Nicholas Company, represents the operations for the month of January:


The following information, taken from the books of Nicholas Comp


The job cost system is used, and the February cost sheet for Job M45 shows the following:

The following information, taken from the books of Nicholas Comp


The following actual information was accumulated during February:

The following information, taken from the books of Nicholas Comp


Required:
1. Using the January data, ascertain the factory overhead application rates to be used during February, based on the following:
a. Direct labor cost
b. Direct labor hours
c. Machine hours
2. Prepare a schedule showing the total production cost of Job M45 under each method of applying factory overhead.
3. Prepare the entries to record the following for February operations:
a. The liability for total factory overhead.
b. Distribution of factory overhead to the departments.
c. Application of factory overhead to the work in process, using direct labor hours. (Use the predetermined rate calculated in 1. and separate applied overhead accounts for each department.)
d. Closing of the applied factory overhead accounts.
e. Recording under- and over-applied factory overhead and closing the actual factory overheadaccounts.

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  book-img-for-question

Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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