$ 18 UI JUU Luunjvui di entes. Donald iransport assembles prestige manufactured homes. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $31 per machine-hour in 2017). The following data (in millions) show operation costs for 2017: Materials Control, beginning balance, January 1, 2017 Work-in-Process Control, beginning balance, January 1, 2017 Finished Goods Control, beginning balance, January 1, 2017 10 Materials and supplies purchased on credit 154 Direct materials used 152 Indirect materials (supplies) issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments Depreciation on plant and manufacturing equipment Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc, with a corresponding credit to various liability accounts) Manufacturing overhead allocated, 3,000,000 actual machine-hours Cost of goods manufactured Revenues Cost of goods sold Required: 1. Prepare an overview diagram of Donald Transport's job-costing system. 2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control? 3. Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts. 4. How did Donald Transport perform in 2017? Howard Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Beginning materials inventory (January 1) $ 104,000 Purchases of materials 416,000 Ending materials inventory (March 31) 120,000 $ 18 UI JUU Luunjvui di entes. Donald iransport assembles prestige manufactured homes. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $31 per machine-hour in 2017). The following data (in millions) show operation costs for 2017: Materials Control, beginning balance, January 1, 2017 Work-in-Process Control, beginning balance, January 1, 2017 Finished Goods Control, beginning balance, January 1, 2017 10 Materials and supplies purchased on credit 154 Direct materials used 152 Indirect materials (supplies) issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments Depreciation on plant and manufacturing equipment Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc, with a corresponding credit to various liability accounts) Manufacturing overhead allocated, 3,000,000 actual machine-hours Cost of goods manufactured Revenues Cost of goods sold Required: 1. Prepare an overview diagram of Donald Transport's job-costing system. 2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control? 3. Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts. 4. How did Donald Transport perform in 2017? Howard Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Beginning materials inventory (January 1) $ 104,000 Purchases of materials 416,000 Ending materials inventory (March 31) 120,000
