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Job order cost flows and under- and overapplied overhead--The following events occurred over the course of a year at Bagley Corp., which uses a job
Job order cost flows and under- and overapplied overhead--The following events occurred over the course of a year at Bagley Corp., which uses a job order costing system: 1. Direct materials purchases totaled $583,000. 2. $132,000 of indirect materials were used in production. Bagley uses a separate Supplies Inventory account for indirect materials. 3. $569,000 of direct materials were used in production. 4. The direct labor payroll was $791,000 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $690,000. 6. Bagby applies overhead based on a predetermined overhead rate of $21 per machine hour. The company used 51,000 machine hours during the year. 7. During the year, Bagley transferred goods costing $2,410,000 into the Finished Goods Inventory account. 8. Bagley sold products with a manufacturing cost of $2,398,000 to customers during the year. Need Assistance With the Following: A: Prepare journal entries to record these events.
B: Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances:
Much appreciated!
Job order cost flows and under- and overapplied overhead--The following events occurred over the course of a year at Bagley Corp., which uses a job order costing system: |
1. Direct materials purchases totaled $583,000. |
2. $132,000 of indirect materials were used in production. Bagley uses a separate Supplies Inventory account for indirect materials. |
3. $569,000 of direct materials were used in production. |
4. The direct labor payroll was $791,000 (credit Wages Payable). |
5. Other manufacturing overhead costs incurred during the year totaled $690,000. |
6. Bagby applies overhead based on a predetermined overhead rate of $21 per machine hour. The company used 51,000 machine hours during the year. |
7. During the year, Bagley transferred goods costing $2,410,000 into the Finished Goods Inventory account. |
8. Bagley sold products with a manufacturing cost of $2,398,000 to customers during the year. |
Need Assistance With the Following: |
A: Prepare journal entries to record these events. B: Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances: Much appreciated!
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