Total actual direct materials cost $487,000 . Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. . Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 17E: During August, Skyler Company worked on three jobs. Data relating to these three jobs follow:...
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Jobs in work in process inventory
Total actual direct materials cost
51,000
$487,000
1. Determine the predetermined overhead rate.
2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and
determine whether overhead is overapplied or underapplied.
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Determine the predetermined overhead rate.
Choose Numerator:
=
Overhead Rate
=
Overhead rate
=
Req 2 and 3>
5 of 7
‒‒‒
T
Overhead Rate
1 Choose Denominator:
1
1
< Req 1
< Prev
H
Next >
O
Transcribed Image Text:Jobs in work in process inventory Total actual direct materials cost 51,000 $487,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate. Choose Numerator: = Overhead Rate = Overhead rate = Req 2 and 3> 5 of 7 ‒‒‒ T Overhead Rate 1 Choose Denominator: 1 1 < Req 1 < Prev H Next > O
At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:
overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead costs
for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows.
Jobs completed and sold
Jobs in finished goods inventory
Jobs in work in process inventory
$360,000
76,000
51,000
Total actual direct materials cost
$487,000
1. Determine the predetermined overhead rate.
2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and
determine whether overhead is overapplied or underapplied.
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Determine the predetermined overhead rate.
Choose Numerator:
=
Overhead Rate
5 of 7
‒‒‒
▪▪▪
Overhead Rate
17 Choose Denominator:
< Prev
............
G
Next >
O
Transcribed Image Text:At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead costs for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360,000 76,000 51,000 Total actual direct materials cost $487,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate. Choose Numerator: = Overhead Rate 5 of 7 ‒‒‒ ▪▪▪ Overhead Rate 17 Choose Denominator: < Prev ............ G Next > O
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