Atlas Analytics Inc. produces voice-activated navigation systems. A competitor committed a willful act of sabotage, breaching Atlas Analytics weak internal control systems.
Significant data, including intellectual properties, research and financial information, was compromised. Unfortunately, Atlas did not backup its data.
The following T-accounts provide data about Atlas Analytics financial results for the year. Management is aware that you graduated with a degree from one of the top accounting programs in our region and has asked you to recreate selected account information and provide relevant journal entries.
Required:
a. What is the amount of indirect material cost incurred during this period?
b. In good form, provide the journal entry, indicating the cost of goods manufactured for the period.
c. In good form, provide the journal entry, indicating the Cost of Goods Sold (before any MOH difference would have been closed out).
Specify whether MOH for the period was underapplied or overapplied, and by how much. Prepare the journal entry to close out the MOH difference, given that the company uses the direct write-off method.

Question

Atlas Analytics Inc. produces voice-activated navigation systems. A competitor committed a willful act of sabotage, breaching Atlas Analytics weak internal control systems.
Significant data, including intellectual properties, research and financial information, was compromised. Unfortunately, Atlas did not backup its data.
The following T-accounts provide data about Atlas Analytics financial results for the year. Management is aware that you graduated with a degree from one of the top accounting programs in our region and has asked you to recreate selected account information and provide relevant journal entries.
  Required:
a. What is the amount of indirect material cost incurred during this period?
b. In good form, provide the journal entry, indicating the cost of goods manufactured for the period.
c. In good form, provide the journal entry, indicating the Cost of Goods Sold (before any MOH difference would have been closed out).
Specify whether MOH for the period was underapplied or overapplied, and by how much. Prepare the journal entry to close out the MOH difference, given that the company uses the direct write-off method.

Quizplus · Accepted Answer

The Answer of Atlas Analytics Inc. produces voice-activated navigation systems. A competitor committed a willful act of sabotage, breaching Atlas Analytics weak internal control systems.
Significant data, including intellectual properties, research and financial information, was compromised. Unfortunately, Atlas did not backup its data.
The following T-accounts provide data about Atlas Analytics financial results for the year. Management is aware that you graduated with a degree from one of the top accounting programs in our region and has asked you to recreate selected account information and provide relevant journal entries.
  Required:
a. What is the amount of indirect material cost incurred during this period?
b. In good form, provide the journal entry, indicating the cost of goods manufactured for the period.
c. In good form, provide the journal entry, indicating the Cost of Goods Sold (before any MOH difference would have been closed out).
Specify whether MOH for the period was underapplied or overapplied, and by how much. Prepare the journal entry to close out the MOH difference, given that the company uses the direct write-off method.