60.1K

Verified Solution

Link Copied!

Acct 3001 test 1 summer 2023 Name Problem 1 Consider the following data: Cost of goods sold Direct labor Direct materials used Cost of goods manufactured Work in process ending Finished goods ending Actual overhead Sales Selling expenses Administrative expenses OH applied at 180% of DM$. $710 $200 $150 $800 $100 $150 $260 $990 $100 $ 50 Show all computations. a) Prepare a schedule of COGM using OH applied. b) Prepare a schedule of COGS. c) Prepare an Income Statement.

Acct 3001 test 1 summer 2023 Name Problem 1 Show all computations. a) Prepare a schedule of COGM using OH applied. b) Prepare a schedule of COGS. c) Prepare an Income Statement. A company manufactures desks. Classify each of the following costs as either direct material, direct labor, overhead, selling expense, or administrative expense: a. Factory insurance b. Sales commissions c. Depreciation on office equipment d. Wood for desks e. Salary for supervisor of assembly workers. f. Nails for desks g. Wages for assembly line workers h. Accountant salary i. Factory rent j. Salary of factory janitor Prepare journal entries for the following: a) Purchased $70,000 in raw material on account. b) Requisitioned into production $60,000 direct material \& $3,000 indirect material. c) Recorded $50,000 direct labor &5,000 indirect labor on account. d) Recorded depreciation on factory machinery $60,000. e) Paid cash of $4,000 for factory electricity f) Applied OH at 150% of DLS. Show computation. g) Goods of $169,000 were completed. h) Goods costing $118,000 were sold on account for $236,000. Problem 4 David Company used a predetermined overhead rate based on an estimate of 25,000 direct labor hours to be worked during the year and an estimated $80,000 of manufacturing overhead. Actual overhead cost and activity during the year were: Actual manufacturing overhead cost incurred $77,000 Actual direct labor hours worked 24,000 a. Compute the predetermined OH rate. b. Compute the OH applied. c. Compute the over or underapplied OH. d. Prepare the journal entry to close the OH to COGS. Show all above computations

Answer & Explanation Solved by verified expert

See Answer