Compute the manufacturing overhead rate for the year
What is the amount of under- or overapplied overhead at December
31?
Prepare the adjusting entry to assign the under- or overapplied
overhead for the year to cost of goods sold.
Exercise 16-3
The ledger of American Company has the following work in process
account.
Production records show that there were 400 units in the beginning
inventory, 30% complete, 1,600 units started, and 1,700 units
transferred out. The beginning work in process had materials cost of
$2,040 and conversion costs of $1,550. The units in ending inventory
were 40% complete. Materials are entered at the beginning of the
painting process.
How many units are in process at May 31?
What is the unit materials cost for May?
What is the unit conversion cost for May?
What is the total cost of units transferred out in May?
What is the cost of the May 31 inventory?
Exercise 17-1
Saddle Inc. has two types of handbags: standard and custom. The
controller has decided to use a plantwide overhead rate based on
direct labor costs. The president has heard of activity-based costing
and wants to see how the results would differ if this system were
used. Two activity cost pools were developed: machining and
machine setup. Presented below is information related to the