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All answers are correct. i was try to solve 3b. and got 10495.86/344.98/799.16, but it not correct answers. I feel stuck, need more help. Thanks!
All answers are correct. i was try to solve 3b. and got 10495.86/344.98/799.16, but it not correct answers. I feel stuck, need more help. Thanks!
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 25,000 $13,600 $31,800 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,800 machine-hours and incur $166,320 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $236,000. b. Raw materials were requisitioned for use in production: $208,000 (85% direct and 15% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $174,400 $ 30,600 $ 41,400 $ 87,200 d. Heat, power, and water costs were incurred in the factory: $50,100. e. Prepaid insurance expired during the year: $19,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). f. Advertising costs were incurred, $59,000. g. Depreciation was recorded for the year: $70,800 (75% relates to factory operations, and 25% relates to selling and administrative activities) f. Advertising costs were incurred, $59,000. g. Depreciation was recorded for the year: $70,800 (75% relates to factory operations, and 25% relates to selling and administrative activities) h. Manufacturing overhead cost was applied to production. The company recorded 43,600 machine-hours for the year. i. Goods that cost $539,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $783,700 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $530,600. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View Journal entry worksheet No Transaction General Journal Credit Debit 236,000 1 a. Raw materials Accounts payable 236,000 2 b. Work in process Manufacturing overhead Raw materials 176,800 31,200 208,000 3 C. 174,400 30,600 Work in process Manufacturing overhead Sales commissions expense Administrativo clarior nynonen 41,400 87 200 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. Manufacturing Overhead Beg. Bal. Raw Materials 25,000 236,000 208,000 b. 53,000 Beg. Bal. 30,600 a. End. Bal. C. d. e. 50,100 15,200 53,100 g. b End. Bal. 31,200 191,840 in. 11,640 Cost of Goods Sold Beg. Bal. $ 0 Beg. Bal. c. Work in Process 13,600 174,400 191,840 176,800 539,200 17,440 530,600 530,600 h. End. Bal. b. End. Bal. Beg. Bal. Finished Goods 31,800 539,200 530,600 40,400 End. Bal. 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations and round your final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheetStep by Step Solution
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