ACC 560 Week 2 Homework Chapter 2 and Chapter 3( E2-5, E2-7, E2-13, P2-4A, E3-3, E3-7, E3-8, E3-2A)
Chapter 2: Job Order Costing and Chapter 3: Process Costing E2-5
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $ 300,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $ 322,000 of overhead costs are incurred and 130,000 hours are used. Instructions
( a) Compute the manufacturing overhead rate for the year
( b) What is the amount of under- or over applied overhead at December 31?
( c) Prepare the adjusting entry to assign the under- or over applied overhead for the year to cost of goods sold.
E2-7 Crawford Corporation incurred the following transactions. 1. purchased raw materials on account $ 46,300.
2. Raw materials of $ 36.000 were requisitioned to the factory. An analysis of the materials
3. Factory labor costs incurred were $ 59,900, of which $ 51,000 pertained to factory wages payable and $ 8,900 pertained to employer payroll taxes payable.
4. Time tickets indicated that $ 54,000 was direct labor and $ 5,900 was indirect labor.
5. Manufacturing overhead costs incurred on account were $ 80,500.