The decision was made to use a process costing system. The first month of operation went fairly smoothly, and the CFO is ready to prepare her journal entries but asked for your help because she has not done this before for a manufacturing company. Data for month ending 1/31/200X Direct labor expended on jobs completed in month 1 $100,000 Direct material used up $500,000 Budgeted manufacturing overhead $2,000,000 Budgeted production volume 4,000 units Actual production volume 4,500 units Supplies, indirect labor, maintenance repair costs totaled $2,200,000 Beginning work in process inventory 0 Ending work in process inventory 0 Individual Portion: Using only the data in the chart, prepare the proper journal entries—including a date and notes showing any calculations—to record the following: Labor Direct material going into the work in progress (WIP) account Manufacturing overhead all being credited to accounts payable Please add your file. Group Portion: You, the CFO, and the rest of the accounting department now need to write a memo summarizing the data from the first month of using the process costing system operation. Using only the data above, prepare a 300–400-word memo addressing all of these questions and showing all calculations: Why is calculating the predetermined overhead rate so important? Compute the firm's predetermined overhead rate. What would it mean if you mistakenly used too high a predetermined rate? What would it mean if you mistakenly used too low a predetermined rate? Compute the proper amount of overhead to apply. Compute the over- or under applied overhead. Prepare the journal entries to record the closing-out of the balance in manufacturing overhead to the appropriate accounts, and show any necessary calculations in the notes of the journal entry.
This question was answered on: Sep 13, 2020Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 13, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.