2-37 Cost of goods manufactured, income statement, manufacturing company. Consider the following account balances (in thousands) for the Peterson Company: Beginning of End of Peterson Company 2017 2017 Direct materials inventory 21,000 23,000 Work-in-process inventory 26,000 25,000 Finished-goods inventory 13,000 20,000 Purchases of direct materials 74,000 Direct manufacturing labor Indirect manufacturing labor 17,000 Plant insurance 7,000 Depreciation-plant, building, and 11,000 equipment Repairs and maintenance-plant 3,000 Marketing, distribution, and customer- 91,000 service costs General and administrative costs 24,000 22,000 Required: 1. Prepare a schedule for the cost of goods manufactured for 2017. 2. Revenues for 2017 were $310 million. Prepare the income statement for 2017 $ 18 UL JUU lu j uui ai nie. Lonaid 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 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 152 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? 2-37 Cost of goods manufactured, income statement, manufacturing company. Consider the following account balances (in thousands) for the Peterson Company: Beginning of End of Peterson Company 2017 2017 Direct materials inventory 21,000 23,000 Work-in-process inventory 26,000 25,000 Finished-goods inventory 13,000 20,000 Purchases of direct materials 74,000 Direct manufacturing labor Indirect manufacturing labor 17,000 Plant insurance 7,000 Depreciation-plant, building, and 11,000 equipment Repairs and maintenance-plant 3,000 Marketing, distribution, and customer- 91,000 service costs General and administrative costs 24,000 22,000 Required: 1. Prepare a schedule for the cost of goods manufactured for 2017. 2. Revenues for 2017 were $310 million. Prepare the income statement for 2017 $ 18 UL JUU lu j uui ai nie. Lonaid 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 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 152 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