Determine the additions to the work-in-process inventory account for


Job no. 2077 was completed in January 20×2; there was no work in process at year-end. All jobs produced during 20×2 were sold with the exception of job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.

 

1. Determine the company’s predetermined overhead application rate. (Omit the “%” sign in your response.)

2. Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead. (Omit the “$” sign in your response.)

3. Compute the amount that the company would disclose as finished-goods inventory on  the December 31, 20×2, balance sheet. (Omit the “$” sign in your response.)

4. 

Prepare the journal entry needed to record the year’s completed production. (Omit the “$” sign in your response.)

 

General Journal Debit Credit
    
5. Compute the amount of under- or overapplied overhead at year-end, and prepare the necessary journal entry to record its disposition(Omit the “$” sign in your response.)
     $ Cost of goods manufactured     [removed]  
 
  Cost of goods sold   $[removed]  
 


7. Would it be appropriate to include selling and administrative expenses in either Manufacturing overhead or cost of goods sold? yes or no

Determine the additions to the work-in-process inventory account for


Job no. 2077 was completed in January 20×2; there was no work in process at year-end. All jobs produced during 20×2 were sold with the exception of job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold.

 

1. Determine the company’s predetermined overhead application rate. (Omit the “%” sign in your response.)

2. Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead. (Omit the “$” sign in your response.)

3. Compute the amount that the company would disclose as finished-goods inventory on  the December 31, 20×2, balance sheet. (Omit the “$” sign in your response.)

4. 

Prepare the journal entry needed to record the year’s completed production. (Omit the “$” sign in your response.)

 

General Journal Debit Credit
    
5. Compute the amount of under- or overapplied overhead at year-end, and prepare the necessary journal entry to record its disposition(Omit the “$” sign in your response.)
     $ Cost of goods manufactured     [removed]  
 
  Cost of goods sold   $[removed]  
 


7. Would it be appropriate to include selling and administrative expenses in either Manufacturing overhead or cost of goods sold? yes or no

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