Paddy's Parts manufactures specialized parts for oil rigs and relies on job costing to cost...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Paddy's Parts manufactures specialized parts for oil rigs and relies on job costing to cost their inventory. At the beginning of the year, management determined the following related to part #: Budgeted Total Overhead $ Cost Allocation Base Machine Hours Machine Hours Direct Material per part $ Beginning of Year Balances Raw Material $ Work in Process $ Finished Goods $ Cost of Goods Sold $ At the end of the year, Paddy's produced parts, using $ of raw materials and $ of overhead. In the process, they used machine hours. Required: a Calculate the predetermined allocation rate for manufacturing overhead. b Calculate the amount of overhead allocated. Close the factory overhead account by using the "writeoff" to COGS approach. Show all of your journal entries. NOTE: Only enter the amount of overhead allocated in the box below. Show your journal entry and any calculations related to it on your separatelysubmitted work paper
Paddy's Parts manufactures specialized parts for oil rigs and relies on job costing to cost their inventory. At the beginning of the year, management determined the following related to part #:
Budgeted
Total Overhead $
Cost Allocation Base Machine Hours
Machine Hours
Direct Material per part $
Beginning of Year Balances
Raw Material $
Work in Process $
Finished Goods $
Cost of Goods Sold $
At the end of the year, Paddy's produced parts, using $ of raw materials and $ of overhead. In the process, they used machine hours.
Required:
a Calculate the predetermined allocation rate for manufacturing overhead.
b Calculate the amount of overhead allocated. Close the factory overhead account by using the "writeoff" to COGS approach. Show all of your journal entries. NOTE: Only enter the amount of overhead allocated in the box below. Show your journal entry and any calculations related to it on your separatelysubmitted work paper
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.