(Question and Answer): EXERCISES 1. Ikerd Company applies manufacturing overhead to units on the basis of machine hours used. During the m

EXERCISES 1. Ikerd Company applies manufacturing overhead to units on the basis of machine hours used. During the month, \$325,000 of actual overhead costs were incurred and 130,000 actual machine hours were used.

Instructions a. Give the general journal entry required to record the incurrence of the actual overhead costs. Assume that all of the overhead costs were paid in cash.

Don't use plagiarized sources. Get Your Custom Essay on
(Question and Answer): EXERCISES 1. Ikerd Company applies manufacturing overhead to units on the basis of machine hours used. During the m
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!

b. Compute the actual overhead rate for the month.

c. During the month, five different units were in production and each unit had the following machine hour usage: Unit #1: 18,000 machine hours Unit #2: 35,000 machine hours Unit #3: 24,000 machine hours Unit #4: 27,000 machine hours Unit #5: 26,000 machine hours Compute the amount of overhead that should be applied to each unit.

d. What total amount of overhead has been applied during the month? e. Give the general journal entry required to apply the overhead costs to production for the month.

(A) General Entry on incurrance of Overhead Cost like Rent, Power:-

Particular Expenses A/c Cr. 325,000

= 325,000/130,000

= \$ 2.5 per machine hour

(C) Allocation of the Total Overhead to each unit:-

 Unit No. Machine Hour Usages Overhed Allocated(\$) 1 18000 45000 2 35000 87500 3 24000 60000 4 27000 67500 5 26000 65000 Total 130000 325000

(D)

General Entry to apply Overhead Cost to production:-

Account Debit Credit

Work in process 325,000

Total 325,000 325,000

Order NOW For a 10% Discount!
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.