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 four decimal places, if necessary). Did the proration of the MOH difference in part (d) have a significant effect on COGS this period? Explain how you could evaluate significance here. Specify the new adjusted COGS. If Locktin reported sales of $475,000 this year, what gross margin percentage did it earn? If the company goal was to generate at least a 35% gross margin, did it meet its goal? What does this tell us about Locktin's control of product costs this period? Extracted text: P8.2 (LO 1, 2, 3) AN The following T-accounts provide selected data about Locktin's financial results for the year. Sadly, several key components went missing after a thief broke into the Locktin accounting office: WIP Inventory RM Inventory 22,500 ? 75,000 ? Beg. bal. Beg. bal. 52,500 DM 72, XXXXXXXXXX End. bal. 18,000 DL 90,000 Applied MOH 112,500 End. bal FG Inventory 90,000 ?? монСontrol (Total debits 111,000 ? during the year) Beg. bal. End. bal. 72,000

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...

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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 four decimal places, if necessary).
Did the proration of the MOH difference in part (d) have a significant effect on COGS this period? Explain how you could evaluate significance here. Specify the new adjusted COGS.
If Locktin reported sales of $475,000 this year, what gross margin percentage did it earn? If the company goal was to generate at least a 35% gross margin, did it meet its goal? What does this tell us about Locktin's control of product costs this period?

P8.2 (LO 1, 2, 3) AN The following T-accounts provide selected data about Locktin's financial results
for the year. Sadly, several key components went missing after a thief broke into the Locktin accounting
office:
WIP Inventory
RM Inventory
22,500 ?
75,000 ?
Beg. bal.
Beg. bal.
52,500
DM
72, XXXXXXXXXX
End. bal.
18,000
DL
90,000
Applied MOH 112,500
End. bal
FG Inventory
90,000
??
монСontrol
(Total debits 111,000 ?
during the
year)
Beg. bal.
End. bal.
72,000

Extracted text: P8.2 (LO 1, 2, 3) AN The following T-accounts provide selected data about Locktin's financial results for the year. Sadly, several key components went missing after a thief broke into the Locktin accounting office: WIP Inventory RM Inventory 22,500 ? 75,000 ? Beg. bal. Beg. bal. 52,500 DM 72, XXXXXXXXXX End. bal. 18,000 DL 90,000 Applied MOH 112,500 End. bal FG Inventory 90,000 ?? монСontrol (Total debits 111,000 ? during the year) Beg. bal. End. bal. 72,000

Answered 97 days After Jun 04, 2022

Solution

Rinki answered on Sep 10 2022

73 Votes

2
1. For calculating MOH difference lets first fill the missing information in T- accounts
    RAW MATERIAL INVENTORY

    BEGNING BALANCE
    22500
    TO WIP
    72000
    (Taken from WIP A/c)
    PURCHASED
    75000
    TO MOH
    7500
    (Balancing figure)


    (Indirect Material)


    ENDING BALANCE
    18000



    WIP

    BEGNING
    52500
    TO FINISHED GOODS
    282000

    DM
    72000



    DL
    90000



    APPLIED MOH
    112500



    ENDINGBALANCE
    45000


    (Balancing Figure)

    FINISHED GOODS INVENTORY

    BEGNING
    90000
    TO COGS
    300000
    (Balancing...

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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...

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