Direct Materials Control Work-in-Process Control Finished Goods Control 1-1-2017

Question

Direct Materials Control        Work-in-Process Control        Finished Goods Control

1-1-2017               42,000         148,000                     1-1-2017 82,000                                     1-1-2017 105,000       700,000

             135,000                       Dir. Manuf.                                                           705,000      

                                                    labor        285,000                                                                  

Manufacturing Overhead Control                                             Manufacturing Overhead Allocated                Cost of Goods Sold

            425,000                                                                                                                                   

a. Direct manufacturing labor wage rate was $ 15per hour.

b. Manufacturing overhead was allocated at $ 20per direct manufacturing labor-hour.

c. During the year, sales revenues were $ 1,550,000 and marketing and distribution costs were 810,000

.   Requirements:

1.What was the amount of direct materials issued to production during 2017?

2.What was the amount of manufacturing overhead allocated to jobs during 2017?

3. What was the total cost of jobs completed during 2017?

4.What was the balance of work-in-process inventory on December 31, 2017?

5.What was the cost of goods sold before proration of under- or overallocated overhead?

6.What was the under- or overallocated manufacturing overhead in 2017?

7.Dispose of the under- or overallocated manufacturing overhead using the following:

a. Write-off to Cost of Goods Sold

b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold

8.Using each of the approaches in requirement 7, calculate Keezel's operating income for 2017

9.Which approach in requirement 7 do you recommend Keezeluse? Explain your answer briefly.

        

Homework: Chapter 4 Homework Score: 0 of 3 pts P4-42 (book/static) Save 7 of 7 (6 complete) HW Score: 64.08%, 9.61 of 15 pts Question Help Keozel Company uses normal costing in its job-sting system Partialy completed T-aunts and additiona information fer Keezel for 2017 are as tolows Ell (Click the icon to view the T-accounts.) Read the requirements (Click the icon to view the additional information.) Requirement 1. What was the amaunt ot direct materials Issued to iT-accounts Direct materias issued to production during 2017 was s Direct Materials Control Work-in-Process Control Finished Goods Control 1-1-2017 42 48 D001-1-2017 1-1-2017 05 Ci00 700 00D Dir. Manuf labor Manufacturing Overhead Control Manufacturing Overhead Allocated Cost of Goode Sold 425 Print Done Enter any number in the edit ficlds and then click Check Answer. 1 ag Clear AlI Check Answer

Explanation / Answer

1. Direct materials issued to production during 2017 was: $148000

2. Manufacturing overhead allocated to jobs during 2017: $380000

Direct manufacturing labor hours = $285000/$15 = 19000

Manufacturing overhead allocated = 19000 x $20 = $380000

3. Total cost of jobs completed during 2017: $705000

4. Balance of work in process inventory on December 31, 2017: $190000

5. Cost of goods sold: $700000

6. Manufacturing overhead under-applied: $45000

Per Chegg guidelines, first 4 sub-parts are answerable. Kindly post the remaining separately. Also, please specify whether journal entries are required for 7. Thank you.

Work in Process Control 01-01-2017 82000 705000 DM 148000 DL 285000 MOH 380000 End. Bal. 190000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.