25. Clarke Company uses job costing, and applies manufacturing overhead costs to jobs at a rate of...
Question:
25. Clarke Company uses job costing, and applies manufacturing overhead costs to jobs at a rate of 120% of direct labor cost. Beginning inventories were $40,000 in raw materials, $120,000 in work-in-process, and $250,000 in finished goods. This period, the following transactions occurred:
yyDirect materials worth $350,000 and indirect materials worth $70,000 were purchased on account.
yyDirect materials worth $340,000 and indirect materials worth $75,000 were put into production.
yyDirect labor was paid $300,000 cash.
yy Actual manufacturing overhead costs other than indirect materials were $449,000, all paid in cash except $25,000 in depreciation expense.
yyGoods costing $1,000,000 were completed, $20,000 of which were spoiled as a normal part of the production process, and $15,000 of which were abnormally spoiled.
yy The company incurred normal rework costs of $12,000 and abnormal rework costs of $11,000, paid in cash.
yy The company incurred $750,000 in period expenses, all paid in cash except $90,000 in depreciation expense.
yy The company sold goods costing $720,000.
Make all journal entries in the normal costing system for the period, and post them to t-accounts.
Step by Step Answer:
Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison