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Raw Materials and overhead rate

Question 16:

On January 1, Schaf Corporation had $25,000 of raw materials on hand. During the month, the company purchased an additional $56,000 of raw materials. During January, $56,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $7,000.

The journal entry to record the requisition from the storeroom would include a:

credit to Manufacturing Overhead of $7,000

debit to Work in Process of $49,000

debit to Raw Materials of $56,000

debit to Work in Process of $56,000

Question 17:

Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.

Estimated manufacturing overhead $214,225
Estimated machine-hours 4,100
Actual manufacturing overhead $156,000
Actual machine-hours 4,180

The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.

The predetermined overhead rate is closest to:

$52.87

$51.41

$52.25

$52.02

Solution Preview

Please find my response below.

Answer 16: The correct answer will be a "debit to Work in Process of 49,000"

Whenever raw ...

Solution Summary

The solutions answers the question(s) below.

$2.19