Alameda Products uses a job order costing system The companys inventory balances on April 1, the start of its fiscal year, were as follows Raw Materials $41,000 Work in Progress $73,000 Finished Goods $5,500 Manufacturing Overhead $0 During the year the following occurred Raw materials purchased on account $186,000 Raw materials issued from the storeroom for use in production $130,000 (80 direct materials and 20 indirect materials) Employee salaries and wages paid in cash were as follows Direct Labor (WIP) $183,000 Indirect Labor (Man OH) $68,000 Selling, General and Administrative Expenses (SG A period cost) $110,000 Utility Costs incurred in the factory and paid in cash (Man OH indirect cost) $24,000 Advertising Costs incurred and paid in cash (period cost) $132,000 Depreciation $80,000 (90 related to factory assets and considered manufacturing overhead 10 related to corporate assets and considered a period type depreciation expense) Estimated Manufacturing Overhead applied to jobs in W I P at a pre determined overhead rate of $5 50 per unit produced 35,000 units produced in the current year Costs of goods transferred from W I P to Finished Goods totaled $400,000 Sales for the year totaled $1,512,000 and were all in cash The total cost to produce these goods was $351,000 and were transferred from Finished Goods to Cost of Goods Sold Prepare the Journal Entry to clear out the Manufacturing Overhead Account (to be calculated) Paid Income Tax Expense in cash totaling $225,000 Prepare all 11 required journal entries in proper debit credit journal entry form 2 Post all journal entries to related t accounts 3 Prepare Raw Materials Sub Account statement Properly label all items 4 Prepare Work in Progress Sub Account Statement Properly label all items 5 Prepare Finished Goods Sub Account Statement Properly label all items 6 Prepare the Cost of Goods Manufactured Schedule in proper form properly label all items and amounts 7 Prepare the Cost of Goods Sold Schedule in proper form properly label all items and amounts 8 Prepare the Multiple Step (Traditional) Income Statement in proper form properly label all items and amounts

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Posted on Aug 05, 2024

Alameda Products uses a job-order costing system. The companys inventory balances on April 1, the start of its fiscal year, were as follows:

Raw Materials: $41,000 Work-in-Progress: $73,000 Finished Goods: $5,500 Manufacturing Overhead: $0

During the year the following occurred:

Raw materials purchased on account: $186,000
Raw materials issued from the storeroom for use in production: $130,000 (80% direct materials and 20% indirect materials).
Employee salaries and wages paid in cash were as follows: Direct Labor (WIP): $183,000; Indirect Labor (Man OH): $68,000; Selling, General and Administrative Expenses (SG&A period cost) $110,000.
Utility Costs incurred in the factory and paid in cash (Man OH--indirect cost): $24,000.
Advertising Costs incurred and paid in cash (period cost): $132,000.
Depreciation: $80,000 (90% related to factory assets and considered manufacturing overhead; 10% related to corporate assets and considered a period type depreciation expense).
Estimated Manufacturing Overhead applied to jobs in W-I-P at a pre-determined overhead rate of $5.50 per unit produced. 35,000 units produced in the current year.
Costs of goods transferred from W-I-P to Finished Goods totaled $400,000.
Sales for the year totaled $1,512,000 and were all in cash. The total cost to produce these goods was $351,000 and were transferred from Finished Goods to Cost of Goods Sold.
Prepare the Journal Entry to clear out the Manufacturing Overhead Account (to be calculated)
Paid Income Tax Expense in cash totaling $225,000.