Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 Dream Makers is a small manufacturer of gold and platinum Jewelry. It uses a job costing system that applies overhead on the basis of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
5 Dream Makers is a small manufacturer of gold and platinum Jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $562,100, and management budgeted 38,500 direct labor-hours. The company had no Materials, Work-in-process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: Book a. April Insurance cost for the manufacturing property and equipment was $2,300. The premium had been paid in January b. Recorded $1,375 depreciation on an administrative asset. c. Purchased 21 pounds of high-grade polishing materials at $16 per pound (Indirect materials). The purchase was on credit d. Pald factory utility bill, $6,910, in cash e. Incurred 4,000 hours and paid payroll costs of S160.000. Of this amount 1000 hours and $20,000 were indirect labor costs. 1. Incurred and paid other factory overhead costs, $6,570 9. Purchased $29,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit Requisitioned $23,600 of direct materials and $2.600 of indirect materials from Materials inventory incurred and paid miscellaneous selling and administrative expenses, $7060 incurred $4,555 depreciation on manufacturing equipment for April k Pald advertising expenses in cash, $3,400. 1. Applied factory overhead to production on the basis of direct labor hours. m. Completed goods costing 569,000 during the month. n. Made sales on account in April, $68,510. The Cost of Goods Sold was $56,260, Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April events 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold. 5. Prepare the income statement for April 2. Prepare journal entries to record the April events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold accour 4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold. 5. Prepare the income statement for April. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4 COGM Reg 4 COGS Req 5 Prepare a schedule of Cost of Goods Manufactured. Dream Makers Statement of Cost of Goods Manufactured For the Month Ended April 30 Direct materials used Direct labor Factory overhead applied Total manufacturing costs incurred during year Add: Work-in-process inventory, Beginning Total manufacturing costs to account for Less: Work-in-process inventory, Ending Cost of goods manufactured Actual overhead 23,500 140,000 43,800 207,300 0 207,300 $ (137,300) $ 69,000 Total factory overhead Total applied overhead Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold. 5. Prepare the income statement for April. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Req 4 COGM Req 4 COGS Reg 5 Prepare a schedule of Cost of Goods Sold. Dream Makers Schedule of Cost of Goods Sold For the Month Ended April 30 Finished goods inventory, beginning Cost of goods manufactured Total goods available for sale Finished goods inventory, ending Cost of goods sold Overapplied overhead Adjusted cost of goods sold eBook Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 COGM Reg 4 COGS Reg 5 Prepare the income statement for April Dream Makers Income Statement For the Month Ended April 30 Sales revenue Cost of goods manufactured Gross margin Seling and administrative Advertising expenso Total selling & administrative expenses Operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory

Authors: Ian Dennis

1st Edition

1138599700, 978-1138599703

More Books

Students also viewed these Accounting questions

Question

The company has fair promotion/advancement policies.

Answered: 1 week ago