Question 1 (7 points) During FY 2016, Bravo Manufacturing had a beginning finished goods inventory of $250 & ending finished goods inventory of $1,000. Work-in-process decreased by $500 during FY 2016...

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Question 1 (7 points)   During FY 2016, Bravo Manufacturing had a beginning finished goods inventory of $250 & ending finished goods inventory of $1,000.  Work-in-process decreased by $500 during FY 2016 and factory overhead was $2,000. The total manufacturing costs amounted to $48,000. Use this information to determine the FY 2016 dollar amount of: (Round dollar values & enter as whole dollars only.) 1. Cost of Goods Manufactured 2. Cost of Goods Sold   Question 2 (7 points)   During FY 2016 Bravo Manufacturing had total manufacturing costs are $520,000. Their cost of goods manufactured for the year was $475,000.  The January 1, 2017 balance of Work-in-Process Inventory is $60,000. Use this information to determine the dollar amount of the FY 2016 beginning Work-in-Process Inventory. (Round dollar values & enter as whole dollars only.)   Question 3 (7 points)   Bravo Company's January 1, 2016 finished goods inventory was $100,000. The January 1, 2017 finished goods inventory is $80,000.  Cost of goods manufactured for the FY 2016 was $250,000. Use this information to determine the dollar amount of the FY 2016 cost of goods sold. (Round dollar values & enter as whole dollars only.)   Question 3 options: Question 4 (7 points)   Bravo Company manufactures quality gentlemen's clothing.  The following selected financial information for the fiscal year 2016 is provided: Item Amount Sales $100,000 Cost of Goods Manufactured 75,000 Direct Material Purchased 40,000 Factory Overhead 10,000 Work in Process - January 1 30,000 Work in Process - December 31 15,000 Direct Material - December 31 10,000 Finished Goods Inventory - December 31 60,000 Net Income 15,000 Direct Materials used 30,000 Cost of Goods Sold 55,000 Use this information to determine the dollar amount of Bravo's Direct Labor Costs for the fiscal year 2016. (Round dollar values & enter as whole dollars only.)     Question 4 options: Question 5 (8 points)   Bravo Manufacturing Company began operations on January 1, 2016.  Depreciation for the year amounted to $200,000: 35% relates to sales, 25% relates to administrative facilities, and 40% to the factory.  Of the total units produced during FY 2016: 75% were sold in 2016 & 25% were in the finished good inventory. Use this information to determine the dollar amount of the total depreciation that will be in the: (Round dollar values & enter as whole dollars only.) 1. FY 2016 Product Costs 2. FY 2016 Period Costs 3. FY 2016 Cost of Goods Sold 4. FY 2016 Balance Sheet   Question 5 options: Question 6 (8 points)   Bravo Company's January 1, 2016 finished goods inventory was $100,000. The January 1, 2017 finished goods inventory is $80,000.  Cost of goods manufactured for the FY 2016 was $260,000. Use this information to determine the dollar amount of the FY 2016 cost of goods sold. (Round dollar values & enter as whole dollars only.) Question 6 options: Question 7 (8 points)   Alpha Company purchased, on account, 3,500 pounds of raw materials at $10 per pound on January 2, 2017. The production manager requisitioned and received 2,500 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: Date Accounts Debit Credit 1/1/17                       1/15/17                             Question 8 (8 points)   During FY 2016, Alpha Company recorded total of factory overhead costs of $250,000. Additionally, Alpha applied a total of $245,000 of factory overhead to various job orders during FY 2016. Use this information to prepare the adjusting General Journal entry (without explanation) to close any over or under application of factory overhead. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit 12/31/16                           Question 9 (8 points)   Bravo 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 $250,000 and direct labor hours of 50,000. During the month of February 2017, Job A-1 incurred direct labor of 800 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: Date Accounts Debit Credit 2/28/17                           Question 10 (8 points)   Bravo 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 $270,000 and direct labor hours of 30,000. During the month of February 2017, Job A-1 incurred direct labor of 800 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: Date Accounts Debit Credit 2/28/17                             Question 11 (8 points)   On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:             Factory Manager Salary                  $7,000             Factory Utilities                                   2,000             Machinery Deprecation                    11,000             Machinery Repairs                             2,500             Factory Insurance (prepaid)              1,000 The overhead application rate is based on direct labor hours.  The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entry to record the factory overhead costs. (round any final dollar answers to the nearest whole dollar): General Journal: Date Accounts Debit Credit 3/31/17                                                             Question 12 (8 points)   On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:             Factory Manager Salary                  $6,000             Factory Utilities                                   2,500             Machinery Deprecation                    10,000             Machinery Repairs                             2,000             Factory Insurance (prepaid)              1,000 The overhead application rate is based on direct labor hours.  The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entries for the: (round any final dollar answers to the nearest whole dollar):             1. allocation of factory overhead to Job Order A-2             2. allocation of factory overhead to Job Order A-3  General Journal: Date Accounts Debit Credit 3/31/17                       3/31/17                           Question 13 (8 points)   On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:             Factory Manager Salary                  $6,000             Factory Utilities                                   2,500             Machinery Deprecation                    10,000             Machinery Repairs                             2,000             Factory Insurance (prepaid)              1,000 The overhead application rate is based on direct labor hours.  The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entry for the adjusting entry to dispose of any over or under application of factory overhead. (round any final dollar answers to the nearest whole dollar):   General Journal: Date Accounts Debit Credit 3/31/17                         --------------------------------------------------------------------------------------------------------------------  Question 14 (7 points)   March 1, 2017, Alpha Company's beginning work in process inventory had 8,000 units. This is its only production department. Beginning WIP units were 50% complete as to conversion costs. Alpha introduces direct materials at the beginning of the production process.  During March, a total of 15,000 units were started and a total of 20,000 units were completed. Alpha's ending WIP inventory had 3,000 units which were 70% complete as to conversion costs. Alpha uses the weighted average method. Use this information to determine for March 2017 the equivalent units of production for conversion costs. (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units) Question 15 (12 points)   Alpha Company, on March 1, 2017 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 100,000 units were started. At the end of the month all started units were 80% complete with respect to conversion. Direct Materials placed into production had a total cost of $24,000 and the total conversion cost for the month was $16,000. Alpha uses the weighted-average process costing method. Use this information to determine for the month of March: (Round & enter final answers to the nearest penny.)             1. the cost per equivalent unit of direct material             2. the cost per equivalent unit of conversion   Question 16 (18 points)   Alpha Company, on March 1, 2017 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Alpha started into production 10,000 units. At the end of the month there were 5,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 60% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:             Direct Material                      $20,000             Direct Labor                              8,000             Factory Overhead                   32,000 Alpha uses the weighted-average process costing method. Use this information to determine for the month of March: (Round & enter final answers to the nearest penny.)             1. the cost per equivalent unit of direct material             2. the cost per equivalent unit of conversion             3. the cost per unit transferred to finished goods   Question 17 (12 points)   Alpha Company, on March 1, 2017 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Alpha started into production 10,000 units. At the end of the month there were 5,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 40% complete with respect to conversion.
Answered Same DayNov 06, 2021

Answer To: Question 1 (7 points) During FY 2016, Bravo Manufacturing had a beginning finished goods inventory...

Harshit answered on Nov 09 2021
150 Votes
Question 1
    1
     
    Total Manufacturing Cost
    48000
    Add: Work-in-process decrease
    500
    Cost of Goods Manufactured
    48500
    2
     
    Cost of Goods Manufactured
    48500
    Add: Beginning finished goods inventory
    250
    Less: Ending finished goods inventory
    -1000
    Cost of Goods Sold
    47750
Question 2
    Cost of goods manufactured
    $ 475,000
    Less: Total Manufacturing Cost
    $ (520,000)
    Add: Ending work in progress inventory
    $ 60,000
    Beginning work in
progress inventory
    $ 15,000
Question 3
January 1, 2016 Finished Goods Inventory = Opening Inventory = $100,000
January 1, 2017 Finished Goods Inventory = Ending Inventory = $80,000
Cost of Goods Manufactured = $250,000
Cost of Goods Sold
= Opening Inventory + Cost of Goods Manufactured - Ending Inventory
= $100,000 + $250,000 - $80,000
= $270,000
Cost of Goods Sold for the FY 2016 = $270,000
Question 4
Cost of goods manufactured = Direct materials used + Direct labor costs + Factory overhead + Work in process, January 1 - Work in process, December 31
75,000 = 30,000+ Direct labor costs + 10,000+30,000-15,000
Direct labor costs= $20,000
The dollar amount of Bravo's direct labor costs for the fiscal year 2016 is $20,000.
    
Question 5
Product cost = Depreciation* Factory percentage
Period cost = Depreciation * (sales + administrative) percentage
Cost of goods sold = Depreciation * Factory percentage * sales percentage
Balance sheet = Depreciation * Factory percentage * Inventory percentage

     
    Calculations
    Amount
    Product costs (FY 2016)
    $200,000 * 40%
    $80,000
    Period costs (FY 2016)
    $200,000 * (35% + 25%)
    $120,000
    Cost of goods sold (FY 2016)
    $200,000 * 40% * 75%
    $60,000
    Balance sheet (FY 2016)
    $200,000 * 40% * 25%
    $20,000
    
    
    
    Product costs (FY 2016)
    $80,000
     
    Period costs (FY 2016)
    $120,000
     
    Cost of goods sold (FY 2016)
    $60,000
     
    Balance sheet (FY 2016
    $20,000
     
Question 6
Opening Inventory = $100,000
Closing Inventory = $80,000
Cost of goods sold = Opening Inventory + Cost of goods manufactured – Closing Inventory
So, Cost of goods sold = $100,000 + $260,000 - $80,000
= $280,000
Question 7
    The required journal entries are :-
    Date
    Particulars
    Amount
    Amount
    Jan-02
    Raw material inventory ( 3500 * 9 )
    31500
     
     
     To Accounts payable
     
    31500
    Jan-15
    WIP inventory ( 2500 * 9 )
    22500
     
     
     To Raw material inventory
     
    22500
Question 8
Applied factory Overhead = $ 245,000
Recorded factory Overhead = $ 250,000
Variance = $ 5,000 unfavourable i.e under-applied
Journal Entry:
Cost of Goods sold $5000
To Factory Overhead $5000
Question 9
Labour Overhead Rate = Total Estimated Overhead Cost / Direct Labour Hour
= $ 250000 / 50000
= $ 5 per hour
Factory overhead in February = Actual Hours * Labour overhead Rate
= 800 * $ 5
= $ 4000
Question 10
    Overhead rate =overhead costs/direct labor hours
     
     
    =270000/30000=
    9
     
    Overhead applied to Job A-1 = 800*9=7200
     
     
    Journal entry:
     
     
    Work in Process inventory
    7200
     
     To Factory overhead
     
    7200
Question 11
    Date
    Particulars
    Debit
    Credit
    3.31.2017
    Factory overhead
    $23500
     
     
     To Salaries Expense
     
    $7000
     
     To Utilities Expense
     
    $2000
     
     To Acc Depreciation- Machinery
     
    $11000
     
     To Repair Expense
     
    $2500
     
     To Prepaid Insurance
     
    $1000
    3.31.2017
    WIP - Job-A-2
    $14910
     
     
     To Factory overhead
     
    $14910
     
    ($7100*2.1)
     
     
    3.31.2017
    WIP - Job-A-3
    $6300
     
     
     To Factory overhead
     
    $6300
     
    ($3000*2.1)
     
     
    3.31.2017
    COGS
    $2290
     
     
     To Factory overhead
     
    $2290
     
    ($23500-$21210)
     
     
     
    ($6300+$14910 =$21210)
     
     
     
    ($21000/$10000 hours) = 2.1/hr
     
     
Question 12
    Date
    Account Titles and Explanation
    Debit
    Credit
    Mar. 31
    Manufacturing overhead ($6,000+$2,500+$10,000+$2,000+$1,000)
    21,500
     
     
     To Accounts Payable
    
    21,500
Predetermined overhead rate = $21,000 / 10,000 direct labor-hours = $2.10 per direct labor hour
Compute the amounts of overhead applied to Job A-2 and Job A-3 as follows:
Overhead applied to Job A-2
= Actual direct labor-hours worked x Predetermined overhead rate
= 7,100 x $2.1
= $14,910
Overhead applied to Job A-3
= Actual direct labor-hours worked x Predetermined overhead rate
= 3,000 x $2.10
= $6,300
    Date
    Account Titles and Explanation
    Debit
    Credit
    Mar. 31
    Work in Process - Job A-2
    14,910
     
     
    Work in Process - Job A-3
    6,300
     
     
          Manufacturing Overhead
     
    21,210
Actual factory overhead is $21,500 and applied factory overhead is $21,210. This...
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