Question
aa, purchases 100% of its Raw Materials on account from vendor, Smash Company and applies overhead to production jobs using a pre-determined overhead rate based
aa, purchases 100% of its Raw Materials on account from vendor, Smash Company and applies overhead to production jobs using a pre-determined overhead rate based on direct labor dollars. At the end of each year, using the method taught in class, aa records a disposal entry writing off any under-or-over applied MOH. Below, aa provides the account balances reported on the company's year-end balance sheet as well as the budgeted and actual activity for the twelve months ended 12/31/2019:
whats is the the account balance for Raw Materials at 12/31/2019
Account Balances: Raw Materials Work In Process Finished Goods Accounts Payable- Smash 12/31/2018 $362,000 415,000 115,000 225,000 12/31/2019 ? 390,000 122,000 280,000 Budgeted & Actual 2019 Activity: Purchases of Raw Materials Direct Materials (Requisitioned) Indirect Materials (Requisitioned) Direct Labor (incurred) Indirect Labor (incurred) Factory Depreciation Non-Factory Depreciation Factory Supervisor(s) Salaries Non Factory Supervisor(s) Salaries Factory Insurance, Utilities & Rent Non Factory Insurance, Utilities & Rent Budgeted $2,350,000 2,050,000 40,000 772,000 135,000 215,000 100,000 350,000 300,000 225,000 180,000 Actual $2,500,000 2,100,000 45,000 780,000 140,000 215,000 110,000 300,000 308,000 230,000 188,000Step by Step Solution
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