Problem 1:
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
Problem 2:
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