{"id":14981,"date":"2021-11-11T01:47:28","date_gmt":"2021-11-11T01:47:28","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/e2-28-and-p3-46-accounting-homework-help\/"},"modified":"2021-11-11T01:47:28","modified_gmt":"2021-11-11T01:47:28","slug":"e2-28-and-p3-46-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/e2-28-and-p3-46-accounting-homework-help\/","title":{"rendered":"E2-28 and p3-46 | Accounting homework help"},"content":{"rendered":"
\n

E2-28 and <\/span><\/strong>P3-46 \u00a0<\/span><\/strong><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

2-28<\/span><\/strong> Consider the following costs that were incurred during the current year<\/span><\/p>\n

P3-46 Finlon Upholstery, Inc<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2-28<\/span><\/strong> Consider the following costs that were incurred during the current year:<\/span><\/p>\n

1.<\/span><\/strong> Tire costs incurred by Ford Motor Company.<\/span><\/p>\n

2.<\/span><\/strong> Sales commissions paid to the sales force of Dell Inc.<\/span><\/p>\n

3.<\/span><\/strong> Wood glue consumed in the manufacture of Thomasville furniture.<\/span><\/p>\n

4.<\/span><\/strong> Hourly wages of refinery security guards employed by ExxonMobil Corporation.<\/span><\/p>\n

5.<\/span><\/strong> The salary of a financial vice president of Hewlett Packard.<\/span><\/p>\n

6.<\/span><\/strong> Advertising costs of Coca-Cola.<\/span><\/p>\n

7.<\/span><\/strong> Straight-line depreciation on factory machinery of Boeing Corporation.<\/span><\/p>\n

8.<\/span><\/strong> Wages of assembly-line personnel of Whirlpool Corporation.<\/span><\/p>\n

9.<\/span><\/strong> Delivery costs on customer shipments of Ben & Jerry<\/span>\u2019<\/span>s ice cream.<\/span><\/p>\n

10.<\/span><\/strong> Newsprint consumed in printing The New York Times<\/em>.<\/span><\/p>\n

11.<\/span><\/strong> Plant insurance costs of Texas Instruments.<\/span><\/p>\n

12.<\/span><\/strong> Glass costs incurred in light-bulb manufacturing of General Electric.<\/span><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

Required:<\/span><\/strong> Evaluate each of the preceding and determine whether the cost is ( a<\/em> ) a product cost or a period cost, ( b<\/em> ) variable or fixed in terms of behavior, and ( c<\/em> ) for the product costs only, whether the cost is properly classified as direct material, direct labor, or manufacturing overhead. Item 1 is done as an example:<\/span><\/p>\n

Tire costs: Product cost, variable, direct material<\/span><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

P3-46 Finlon Upholstery, Inc. uses a job order costing system to accumulate manufacturing<\/span><\/strong> costs. The company<\/span>\u2019<\/span>s work-in-process on December 31, 20×1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date.<\/span><\/p>\n

Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company<\/span>\u2019<\/span>s practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct labor rate.) Budgeted totals for 20×2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow.<\/span><\/p>\n

Direct material used …………………………………………………………………………… $5,600,000<\/span><\/p>\n

Direct labor ………………………………………………………………………………………… 4,350,000<\/span><\/p>\n

Indirect material used …………………………………………………………………………… 65,000<\/span><\/p>\n

Indirect labor ……………………………………………………………………………………… 2,860,000<\/span><\/p>\n

Factory depreciation …………………………………………………………………………….. 1,740,000<\/span><\/p>\n

Factory insurance ……………………………………………………………………………….. 59,000<\/span><\/p>\n

Factory utilities …………………………………………………………………………………… 830,000<\/span><\/p>\n

Selling and administrative expenses ……………………………………………………… 2,160,000<\/span><\/p>\n

Total ……………………………………………………………………………………………… $17,664,000<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Job no. 2077 was completed in January 20×2; there was no work in process at year-end. All jobs produced during 20×2 were sold with the exception of job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or over applied overhead to Cost of Goods Sold.<\/span><\/p>\n

Required:<\/span><\/p>\n

1.<\/span><\/strong> Determine the company\u2019s predetermined overhead application rate.<\/span><\/p>\n

2.<\/span><\/strong> Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead.<\/span><\/p>\n

3.<\/span><\/strong> Compute the amount that the company would disclose as finished-goods inventory on the<\/span><\/p>\n

December 31, 20×2, balance sheet.<\/span><\/p>\n

4.<\/span><\/strong> Prepare the journal entry needed to record the year\u2019s completed production.<\/span><\/p>\n

5.<\/span><\/strong> Compute the amount of under- or over applied overhead at year-end, and prepare the necessary journal entry to record its disposition.<\/span><\/p>\n

6.<\/span><\/strong> Determine the company\u2019s 20×2 cost of goods sold.<\/span><\/p>\n

7.<\/span><\/strong> Would it be appropriate to include selling and administrative expenses in either manufacturing<\/span><\/p>\n

\u00a0<\/p>\n

overhead or cost of goods sold? Briefly explain<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

E2-28 and P3-46 \u00a0 \u00a0 2-28 Consider the following costs that were incurred during the current year P3-46 Finlon Upholstery, Inc \u00a0 2-28 Consider the following costs that were incurred during the current year: 1. Tire costs incurred by Ford Motor Company. 2. Sales commissions paid to the sales force of Dell Inc. 3. Wood […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-14981","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/14981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=14981"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/14981\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=14981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=14981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=14981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}