Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Purchased materials on account, $440,000. b. Incurred total manufacturing wages of $116,000, which included both direct labor and indirect labor. Used direct labor in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
a. Purchased materials on account, $440,000. b. Incurred total manufacturing wages of $116,000, which included both direct labor and indirect labor. Used direct labor in manufacturing as follows: Direct Labor + Chalet 13....... 14,700 Chalet 14.. $ 28,000 Chalet 15...... 19,100 Chalet 16...........$ 21,400 c. Requisitioned direct materials in manufacturing as follows: Direct Materials Chalet 13....... $ 41,100 Chalet 14. $ 56,300 Chalet 15. 62,400 Chalet 16............ $ 66,400 d. Depreciation of manufacturing equipment used on different chalets, $6,900. e. Other overhead costs incurred on Chalets 13-16: Equipment rentals paid in cash...... $ 10,800 Prepaid plant insurance expired..... $ 6,000 .er Print Done Ch ---- d. Depreciation of manufacturing equipment used on different chalets, $6,900. e. Other overhead costs incurred on Chalets 13-16: Equipment rentals paid in cash... $ 10,800 Prepaid plant insurance expired..... $ 6,000 f. Allocated overhead to jobs at the predetermined rate of 60% of direct labor cost. g. Chalets completed: 13, 15, and 16. h. Chalets sold on account: 13 for $98,000 and 16 for $142,000. 1. Record the preceding events in the general journal. 2. Post the appropriate entries to the T-accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero. 3. Summarize the job costs of the unfinished chalet and show that this equals the ending balance in Work in Process Inventory. 4. Summarize the job cost of the completed chalet that has not yet been sold and show that this equals the ending balance in Finished Goods Inventory. 5. Compute the gross profit on each chalet that was sold. What costs must the gross profit cover for Quaint Homes? Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Cost of Goods Sold Finished Goods Inventory Manufacturing Overhead Prepaid Insurance Raw Materials Inventory tal Sales Revenue Wages Payable Work in Process Inventory

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Unknown Author

1st Edition

007723023X, 978-0077230234

More Books

Students also viewed these Accounting questions