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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.