WGU D101 - Cost & Managerial Accounting Pre- Assessment with Formuals

WGU D101 - Cost & Managerial Accounting Pre- Assessment with Formuals 5.0 (1 review) Students also studied Terms in this set (5) Western Governors UniversityD 216 Save D101 Managerial and Cost Accountin...47 terms gxhsjr8r8qPreview

D101 PA

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D101 PA

10 terms adam_puente96 Preview Manag 48 terms tyaj Job order costing- When is it appropriate to use job order costing?The customer has to provide the specifications of the product or service. In order to use job order costing you must be able to separate and identify each job (product) being produced. Companies that cannot specifically identifying and separate each job they use processing costing.Which figures are used in computing a predetermined overhead rate?Accounting for manufacturing cost is not the same process as accounting for direct materials and direct labor costs. Because manufacturing overhead costs generally do not coincide with the flow of production.A company uses direct labor hours to apply manufacturing overhead. Budgeted manufacturing overhead for the coming year is $640,000. Budgeted direct materials purchases are $400,000. Budgeted direct labor cost is $720,000. Budgeted direct labor hours for the coming year are 16,000 hours. Actual manufacturing overhead for the year was $600,000. Actual direct materials purchases were $380,000. Actual direct labor cost was $700,000. Actual direct labor hours for the year were 20,000 hours.What is this company's predetermined overhead rate?$40 per direct labor hour.The budgeted manufacturing overhead for the coming year is $640,000 Budgeted direct labor hours 16,000 This is all you need to remember Answer

640,000/16000 = $40

A company's actual manufacturing overhead was $156,000, and applied manufacturing overhead was

$172,000.

What should be included in the journal entry necessary to close the manufacturing overhead account?Debit to manufacturing overhead for $16,000.How are actual manufacturing overhead costs incurred through the year journalized? As debits into the manufacturing overhead account. As actual manufacturing overhead costs are incurred, they are entered as debits into the

manufacturing overhead account. Answer: 172,000 - 156,000 = $16,000

While actual manufacturing overhead costs are recorded as debits to manufacturing overhead, applied manufacturing overhead entries are recorded as credits to manufacturing overhead. It is important to understand that the debit side of the manufacturing overhead account is used to record actual overhead expenses. Conversely, the credit side of this account is used to record applied manufacturing overhead that is simultaneously debited to the work-in-process inventory account, as illustrated below.A manufacturing company used cash to purchase raw materials costing $3,000.What should be included in the journal entry necessary to record this purchase of raw materials?Credit to cash for $3 000