Question :
Answer the following question(s) using the information below.
Sunny Company manufactures : 1186270
Answer the following question(s) using the information below.
Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $15 per direct labour hour. The following data are obtained from the accounting records for June 2012:
Direct materials
$280,000
Direct labour (7,000 hours @ $11/hour)
$77,000
Indirect labour
$20,000
Plant facility rent
$60,000
Depreciation on plant machinery and equipment
$30,000
Sales commissions
$40,000
Administrative expenses
$50,000
17) The actual amount of manufacturing overhead costs incurred in June 2012 totals
A) $557,000.
B) $200,000.
C) $110,000.
D) $80,000.
E) $105,000.
18) The amount of manufacturing overhead allocated to all jobs during June 2012 totals
A) $77,000.
B) $105,000.
C) $110,000.
D) $200,000.
E) $557,000.
19) For June 2012, manufacturing overhead was
A) overallocated by $90,000.
B) underallocated by $5,000.
C) neither underallocated or overallocated.
D) underallocated by $33,000.
E) overallocated by $5,000.
Use the information below to answer the following question(s).
Because the Abernathy Company used a budgeted indirect cost allocation rate for its manufacturing operations, the amount allocated ($200,000) was different from the actual amount incurred ($225,000).
Before disposition of under/overallocated overhead, the following information was available:
Account Balance
Overhead Allocated
Direct materials
$60,000
$nil
WIP
$190,000
$10,000
Finished goods
$250,000
$20,000
Cost of goods sold
$560,000
$170,000
20) What is the journal entry used to write-off the difference between allocated and actual overhead directly to cost of goods sold?
A)
Cost of Goods Sold
25,000
Manufacturing Overhead Control
25,000
B)
Cost of Goods Sold
25,000
Manufacturing Overhead Allocated
25,000
C)
Manufacturing Overhead Allocated
25,000
Cost of Goods Sold
25,000
D)
Manufacturing Overhead Control
25,000
Cost of Goods Sold
25,000
E)
Work-in-Process Control
25,000
Cost of Goods Sold
25,000
21) What is the journal entry used to write-off the difference between allocated and actual overhead using the proration approach?
A)
Work-in-Process Control
4,750
Finished Goods Control
6,250
Cost of Goods Sold
14,000
Manufacturing Overhead Control
25,000
B)
Manufacturing Overhead Allocated
25,000
Work-in-Process Control
4,750
Finished Goods Control
6,250
Cost of Goods Sold
14,000
C)
Manufacturing Overhead Control
25,000
Work-in-Process Control
1,250
Finished Goods Control
2,500
Cost of Goods Sold
21,250
D)
Work-in-Process Control
1,250
Finished Goods Control
2,500
Cost of Goods Sold
21,250
Manufacturing Overhead Control
25,000
E)
Work-in-Process Control
1,250
Finished Goods Control
2,500
Cost of Goods Sold
21,250
Manufacturing Overhead Allocated
25,000
22) Correct the following journal entry, and explain your changes.
Manufacturing overhead control32,000
Work-in-process-control32,000
To record the cost of machinery repair labour.
23) Job-cost records for Boucher Company contained the following data:
Total Cost
DateDateDateof Job
Job No.StartedFinishedSoldat June 30
220May 18June 12June 20$6,000
221May 20June 19June 214,000
222June 7July 5July 127,000
223June 10June 28July 16,500
224June 19July 16July 258,000
Required:
a.Compute WIP inventory at June 30.
b.Compute finished goods inventory at June 30.
c.Compute cost of goods sold for June.
