1.) 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."
2)
Question 2
(12 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."
Question 3
(12 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."
Question 4
(18 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):
Question 5
(12 points)
During March 2017, Alpha Corporation recorded $13,600 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $14,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 10,100 hours were actually worked. Use this information to determine (round & enter any final dollar answers to the nearest whole dollar):
1. the amount of factory overhead that was applied in March
2. the amount of factory overhead that was over or under applies
3. was the factory overhead was over applied or under applied
Question 6
(4 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 determine the amount of factory overhead that was applied in February (round & enter any final dollar answers to the nearest whole dollar):
Question 7
(4 points)
On May 21, 2017, Bravo Zulu worked 6 hours on Job A-1, and 2 hours on general "overhead activities." Bravo Zulu is paid $15 per hour. Overhead is applied based on $4 per direct labor hour. Additionally, on May 21 Job A-1 requisitioned and entered into production $30 of direct material. On May 21, Bravo Zulu, while working on Job A-1 used $7 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on May 21?
Question 8
Alpha Company has three employees (Tom, Dick, and Harry). Employee Tom worked 8 hours, divided equally between two jobs (Job A-1 & Job A-2). Employee Dick worked 6 hours, divided equally between three jobs (Job A-2, Job A-3, and Job A-4). Employee Harry worked 8 hours, divided equally between two jobs (Job A-3 and Job A-4). Employee Tom is paid $10 per hour, Employee Dick is paid $12 per hour, and Employee Harry is paid $15 per hour. How much direct labor cost is assigned to Job A-2?
Question 9
(4 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):