A16 fx The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rates w D E G H L N N O P 1 Directions Using the following information and templates in each workbook, you will complete the 2 following 3 41. Prepare journal entries to record the preceding transactions. 52. Post the entries prepared in step 1 to their respective T-accounts. 3. Prepare a journal entry to close any balance in the Manufacturing Overhead 6 account to Cost of Goods Sold. 74. Prepare and income statement for the year. Information and Data White Corporation is a manufacturer that uses job-order costing On January 1, the company's inventory balances were as follows 10 11 12 Raw Materials $ 20,000 13 Work in Process $ 14 Finished Goods 15,000 $ 30,000 15 The company applies overhead cost to jobs on the basis of machine-hours worked For the current year, the company's predetermined overhead rates was based on a cost forumulati that estimated 3-450,000 of total manufacturing overhead for an estimated activity level of 75.000 machine-hours The following transactions were recorded for the year Directions and Data Journal T Accounts Income Statement Nexty 9 Type here to search C 122 39F Sunny G A C D E F G H 15 16 17 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rates was based on a cost forumulat that estimated $450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours. The following transactions were recorded for the year 18 A. Raw materials were purchased on account, $410,000 B. Raw materials were used in production, $380,000 ($360,000 direct materials and $20,000 19 indirect materials). 20 21 C. The following costs were accrued for employee services: Direct Labor, $75,000, Indirect Labor, $110,000, Sales Commissions, $90,000, and Administrative Salaries, $200,000 D. Sales travel costs (on account) were $17,000. 22 E Utility costs (on account) in the factory were $43,000. 23 F. Advertising costs (on account) were $180,000 24 G Depreciation was recorded for the year, $350,000 ($280,000 relates to factory assets and $70,000 relates to selling and administrative assets) H. Insurance expired during the year, $10,000 ($7,000 relates to factory operations and the 23 remaining relates to selling and administrative activities. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine hours on all jobs during the year JJobs costing $900,000 to manufacture according to their job cost sheets were completed Directions and Data Journal T Accounts darnn the sear Income Statement, Helpful Formula for calculating N N Estimated total m Predetermined Overhead Rate- stimated total am Feady The Home mert Page Lay Females Data Review View Help PROTICTED VIEW haben verbed by Mufende Abanchet hatedien antithet detected.arthreats you.net to edit this chick editing Enable Editing A16 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rates win based on a cost forum D H N " 0 " D. Sales travel costs (on account) were $17,000 21 22 Usary costs (on account) in the factory were $43,000 23F Advertising costs (on account) were $100,000 G Depreciation was recorded for the year, $350,000 ($280,000 relates to factory assets and $70,000 relates to seting and administratives) 24 Insurance expired during the year, $10,000 ($7,000 relates to factory operations and the 25emaining relates to selling and administrative activities Helpful Formula for calculating for 26 Manufacturing overhead was applied to production. Due to greater than expected demand products, the company worked 80,000 machine hours on all jobs during the year Jobs costing $800,000 to manufacture according to their job cost sheets were completed thuring the year KC Jobs were sold on account to customers during the year for a total of $1,500,000. The jobs cost $870,000 to manufacture according to their job cost sheets Close out entry for Underapplied/ Overappled Manufacturing Overhead (as stated in tem 3 above) Estimated total manufacturing overhead cos Predetermined Overhead Rate- stimated total amount of the allocation bas Duections and Date Accounts come Axwly PType hne sa search 2:00 PM SIPE Survey C50 fx D General Journal Page 1 Date Account Titles Post Ref Debit Credit 10 12 14 15 16 17 19 20 21 F Dations and Data Journal Account income statement Type here to search 3 59 Sunny File Home FIS Page Layout Forms PROTECTED VIEW This file has beet weed by Mr Data Review View Help Defender Ahanced Threat Protection and it hasn't detected any threats.nu.oende mit thechik mabisiting Enable Editing D H Accounts Receivable Manufacturing Overhead M F Comments Prepaid Insurance Raw Materials 20,000 Work in P 15,000 20 Accumulated Depreciation Salaries & Wages Accounts Payable Payable Sales Cost of Goods Sold Sales Comm 24 Drections and Dut Journal T Accounts 0 Type here to search 59F Sunny B 40 309 PM 4/10/2 029 PROTECTED VIEW This file has benifies by Mic Defender Advanced Threat Protection and it hasn't detectest any that feest to edit this ficlckenatenting Enabling Smith Corporation Income Statement For the Year Ended December 31 Directions and Dat Accounts Inceme Statement Peony Type here to search G H Note: You will use all lines on the formatted statement M 0 300 FAX 2 50F Sunny