Posted: March 6th, 2014
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Data for month ending 1/31/200X | |
Direct labor expended on jobs completed in month 1 |
$100,000 |
Direct material used up |
$500,000 |
Budgeted manufacturing overhead |
$2,000,000 |
Budgeted production volume |
4,000 units |
Actual production volume |
4,500 units |
Supplies, indirect labor, maintenance repair costs totaled |
$2,200,000 |
Beginning work in process inventory |
0 |
Ending work in process inventory |
0 |
Individual Portion:
Using only the data in the chart, prepare the proper journal entries—including a date and notes showing any calculations—to record the following:
Please add your file.
Group Portion:
You, the CFO, and the rest of the accounting department now need to write a memo summarizing the data from the first month of using the process costing system operation.
Using only the data above, prepare a 300–400-word memo addressing all of these questions and showing all calculations:
Please add your file.
The following rubric will be used for grading:
Grading Rubric |
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30% |
Individual Portion: Prepare correctly formatted, proper journal entries—including a date and notes any calculations—to record the following:
10%Â Labor 10%Â Direct material going into the work in progress (WIP) account 10%Â Manufacturing overhead all being credited to accounts payable |
5% |
Group Portion: 1. Why is calculating the predetermined overhead rate so important? |
5% |
Group Portion:Â 2.
Compute the firm’s predetermined overhead rate. Show all calculations. |
5% |
Group Portion:Â 3.
What would it mean if you mistakenly used too high a pre-determined rate? What would it mean if you mistakenly used too low a predetermined rate? |
5% |
Group Portion:Â 4.
Compute the proper amount of overhead to apply. Show all calculations. |
20% |
Group Portion:Â 5.
10%Â Compute the over- or under-applied overhead. 10%Â Show all calculations. |
20% |
Group Portion:Â 6.
10%Â Prepare the journal entries to record the closing-out of the balance in manufacturing overhead to the appropriate accounts. 10%Â Show any necessary calculations in the notes of the journal entry. |
10% |
Group Portion:
5% The document is a 300–400-word memo. 5% The memo is a cohesive document.
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