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Allenton Company is a manufacturing firm that uses job-order costing. At the beginning of the year January 1, 2020, the company's inventory balances were
Allenton Company is a manufacturing firm that uses job-order costing. At the beginning of the year January 1, 2020, the company's inventory balances were as follows: Raw materials $26,000 Work in process $47,000 Finished goods $133,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 31,000 machine-hours and incur $248,000 in manufacturing overhead cost. The following transactions occurred during the year: 1. Raw materials were purchased, $411,000 2. Raw materials were requisitioned for use in production, $409,000 ($388,000 direct and $21,000 indirect). 3. The following employee costs were incurred: direct labour, $145,000; indirect labour, $61,000; and administrative salaries, $190,000. 4. Selling costs were incurred, $148,000. 5. Factory utility costs were incurred, $12,000.
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