169.The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400,with $26,000 from the Purifying Department, plus additional $6,400 from the materials storeroom. The conversioncost for the period in the Bottling Department is $8,750 ($3,750 factory applied and $5,000 direct labor). The totalcosts transferred to finished goods for the period was $31,980. The Bottling Department had a beginning inventoryof $1,860.
a.Journalize the cost of transferred-in materials, conversion costs, and the cost transferredout to finished goods.
b.Determine the balance of Work in Process—bottling at the end of the period.
170.The estimated total factory overhead cost and total machine hours for Department 40 for the current year are$250,000 and 56,250, respectively. During January, the first month of the current year, actual machine hours usedtotaled 5,100 and factory overhead cost incurred totaled $22,000.
(a)Determine the factory overhead rate based on machine hours.
(b)Present the entry to apply factory overhead to production in Department 40 for January.
(c)What is the balance of Factory Overhead—Department 40 at January 31?
(d)Does the balance of Factory Overhead—Department 40 at January 31 representoverapplied or underapplied factory overhead?
Round total cost to nearest dollar value.
171.A firm produces its products by a continuous process involving three production departments, 1 through 3. Presententries to record the following selected transactions related to production during August:
(a)Materials purchased on account, $120,000
(b)Material requisitioned for use in Department 1, $125,700, of which $124,200entered directly into the product
(c)Labor cost incurred in Department 1, $195,400, of which $174,000 was useddirectly in the manufacture of the product
(d)Factory overhead costs for Department 1 incurred on account, $54,700
(e)Depreciation on machinery in Department 1, $29,200
(f)Expiration of prepaid insurance chargeable to Department 1, $7,000
(g)Factory overhead applied to production in Department 1, $106,300
(h)Output of Department 1 transferred to Department 2, $362,700