Buckman Corporation, Which Began Operations on January 1 of the Current

question 33

Essay

Buckman Corporation, which began operations on January 1 of the current year, reported the following information: $\begin{array}{lr}\text { Estimated manufacturing overhead } & \$ 600,000 \\\text { Actual manufacturing overhead } & 639,000 \\\text { Estimated direct labor cost } & 480,000 \\\text { Actual direct labor cost } & 500,000 \\\text { Total debits in the Work-in-Process account } & 1,880,000 \\\text { Total credits in the Finished-Goods account } & 920,000\end{array}$
Buckman uses a normal cost system and applies manufacturing overhead to jobs on the basis of direct labor cost. A 60% markup is added to the cost of completed production when finished goods are sold. On December 31, job no. 18 was the only job that remained in production. That job had direct-material and direct-labor charges of $16,500 and $36,000, respectively.
Required:
A. Determine the company's predetermined overhead rate.
B. Determine the amount of under- or overapplied overhead. Be sure to label your answer.
C. Compute the amount of direct materials used in production.
D. Calculate the balance the company would report as ending work-in-process inventory.
E. Prepare the journal entry (ies) needed to record Buckman's sales, which are all made on account.

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Definitions:

Socially Constructed

An understanding that concepts, identities, and values are created through social interactions and are not inherent or fixed, but shaped by cultural and societal norms.

Gender Roles

The societal norms dictating the behaviors, tasks, and responsibilities expected of males and females based on their biological sex.

Muscle Density

The compactness of muscle tissue, which can contribute to overall muscle strength and appearance.

Functionalist

Functionalist is an approach in sociology that emphasizes the role that different parts of society play in maintaining a cohesive and functioning whole.