Six Accounting Questions
Business Finance
11.) On March 31, 2019, Dorchester Corporation recorded the following factory overhead costs incurred:
Factory Manager Salary$5,500
Factory Utilities 2,800
Machinery Deprecation 9,000
Machinery Repairs 1,800
Factory Rent 2,000
The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $22,000 would be incurred, and 2,000 direct labor hours would be worked. During March, 650 hours were actually worked on Job Order 3-1 and 1,200 hours were actually worked on Job Order 3-2. Use this information to prepare the March 31 General Journal entries, without explanations, for the: (round any final dollar answers to the nearest whole dollar):
1. to record the factory overhead costs
2. the allocation of factory overhead to Job Order 3-1
3. the allocation of factory overhead to Job Order 3-2
4. the adjusting entry to dispose of any over or under application of factory overhead
General Journal:
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Accounts |
Debit |
Credit |
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3/31/19 |
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3/31/19 |
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3/31/19 |
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3/31/19 |
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6.) Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided:
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Item |
Amount |
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Sales |
$850,000 |
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Beginning Raw Material Inventory |
74,000 |
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Direct Material Purchased |
308,000 |
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Factory Overhead |
90,000 |
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Finished Goods Inventory – January 1 |
144,000 |
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Work in Process – January 1 |
74,000 |
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Work in Process – December 31 |
98,000 |
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Ending Raw Material Inventory |
58,000 |
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Finished Goods Inventory – December 31 |
168,000 |
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Net Income |
65,000 |
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Direct Labor |
155,000 |
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Cost of Goods Sold |
655,000 |
Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018: (Round dollar values & enter as whole dollars only. Properly title your statement.)
Schedule of Costs of Goods Manufactured
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7.) Alaska Corporation purchased, on account, 6,600 pounds of raw materials at $7.50 per pound on January 2, 2019. The production manager requisitioned and received 2,350 pounds of raw material into production on January 15. Use this information to prepare the General Journal entries (without explanation) for January 2 and January 15. If no entry is required then write “No Entry Required.”
General Journal:
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Date |
Accounts |
Debit |
Credit |
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1/1/19 |
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1/15/19 |
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8.) Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $280,000 and direct labor hours of 25,000. During the month of February 2019, Job 2-1 incurred direct labor of 450 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job A-1 for the month. If no entry is required then write “No Entry Required.
General Journal:
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Date |
Accounts |
Debit |
Credit |
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2/28/19 |
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3.) Annapolis Clothing Company manufactures quality boating attire. The following selected financial information for the fiscal year 2018 is provided:
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Item |
Amount |
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Sales |
$200,000 |
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Cost of Goods Manufactured |
42,000 |
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Direct Material Purchased |
80,000 |
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Factory Overhead |
20,000 |
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Work in Process – January 1 |
60,000 |
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Work in Process – December 31 |
30,000 |
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Direct Material – December 31 |
20,000 |
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Finished Goods Inventory – December 31 |
54,000 |
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Net Income |
30,000 |
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Direct Materials used |
60,000 |
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Cost of Goods Sold |
67,000 |
Use this information to determine the dollar amount of Annapolis Clothing’s Finished Goods Inventory for January 1, 2018. (Round dollar values & enter as whole dollars only.)
