Tabatha Tablets, Inc. manufactures hand-held electronic devices. The following T-accounts provide selected data about Tabatha Tablet's financial results for the year. Unfortunately, several key components were lost after a hacker broke into Tabatha's I.T. system.
You have been hired to determine the missing amounts below.
Required:
a. What is the amount of indirect material cost incurred during this period?
b. Determine the COGS amount for this period (before any MOH difference would have been closed out).
c. Specify whether MOH for the period was underapplied or overapplied, and by how much. Also, prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to 4 decimal places, if necessary.

Question

Tabatha Tablets, Inc. manufactures hand-held electronic devices. The following T-accounts provide selected data about Tabatha Tablet's financial results for the year. Unfortunately, several key components were lost after a hacker broke into Tabatha's I.T. system.
  You have been hired to determine the missing amounts below.
Required:
a. What is the amount of indirect material cost incurred during this period?
b. Determine the COGS amount for this period (before any MOH difference would have been closed out).
c. Specify whether MOH for the period was underapplied or overapplied, and by how much. Also, prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to 4 decimal places, if necessary.

Quizplus · Accepted Answer

The Answer of Tabatha Tablets, Inc. manufactures hand-held electronic devices. The following T-accounts provide selected data about Tabatha Tablet's financial results for the year. Unfortunately, several key components were lost after a hacker broke into Tabatha's I.T. system.
  You have been hired to determine the missing amounts below.
Required:
a. What is the amount of indirect material cost incurred during this period?
b. Determine the COGS amount for this period (before any MOH difference would have been closed out).
c. Specify whether MOH for the period was underapplied or overapplied, and by how much. Also, prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to 4 decimal places, if necessary.