Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. motica which began operations on january 1 of the

Motica which began operations on January 1 of the current year, reported the following information:...

80.2K

Verified Solution

Question

Accounting

Motica which began operations on January 1 of the current year, reported the following information:

Estimated manufacturing overhead $ 700,000 Actual manufacturing overhead 639,000 Estimated direct labor cost 480,000 Actual direct labor cost 700,000 Total debits in the Work-in-Process account 1,780,000 Total credits in the Finished-Goods account 920,000 Brickman applies manufacturing overhead to jobs on the basis of direct labor cost and adds a 60% markup to the cost of completed production when finished goods are sold. On December 31, job no. 18 was the only job that remained in production. That job had direct-material and direct-labor charges of $16,400 and $35,000, respectively.

Required: A. Determine the companys predetermined overhead rate. B. Determine the amount of under- or overapplied overhead. C. Compute the amount of direct materials used in production. D. Calculate the balance the company would report as ending work-in-process inventory

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students