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A 1 Normal 1 No Spac Heading 1 Heading 2 Title Subtitle Paragraph Problem (IV) Job Order Costing Journal Entries Styles The Commonwealth Company uses
A 1 Normal 1 No Spac Heading 1 Heading 2 Title Subtitle Paragraph Problem (IV) Job Order Costing Journal Entries Styles The Commonwealth Company uses a job-order costing system and applies manufacturing overhead cost to jobs using a predetermined overhead rate based on the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost, S186,000; direct materials cost, $155,000. The following transactions took place during the year (all purchases and services were acquired on credit): a. Raw materials purchased, 596,000 b. Raw materials requisitioned for use in production (all direct materials), 588,000 e. Utility bills incurred in the factory, S1 2,000 d. Costs for salaries and wages incurred as follows: Direct labor Indirect labor Selling and administrative salaries... $174,000 $70,000 $124.000 e. Maintenance costs incurred in the factory, $12.000. f. Advertising costs incurred, 598,000 g. Depreciation recorded for the year, $75,000 (75 percent relates to factory assets and the remainder relates to selling, general, and administrative assets). h. Rental cost incurred on buildings, 580,000 (80 percent of the space is occupied by the factory, and 20 percent is occupied by sales and administration) i. Miscellaneous selling, general, and administrative costs incurred, S12,000. j. Manufacturing overhead cost was applied to jobs. k. Cost of goods manufactured for the year, $480,000 1. Sales for the year (all on account) totaled 5900,000. These goods cost $350,000 to manufacture O lipo Normal No Spac... Heading 1 Heading 2 Title Subtitle Paragraph Required: Styles Prepare journal entries to record the information above. Key your entries by the letters a through in the space provided below. 10 Accounts Dr. Cr. a. b. c. o li 5 6 & 7 00 ( 9
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