Almeda Products, Inc uses a job order costing system The companys inventory balances on April 1, the start of its fiscal year, were as follows Raw materials $ 24,000 Work in process 19,600 Finished goods 47,600 During the year, the following transactions were completed Raw materials were purchased on account, $166,000 Raw materials were issued from the storeroom for use in production, $168,000 (75 direct and 25 indirect) Employee salaries and wages were accrued as follows direct labour, $258,000 indirect labour, $81,200 selling and administrative salaries, $89,200 Utility costs were incurred in the factory, $64,200 Advertising costs were incurred, $99,200 Prepaid insurance expired during the year, $19,200 (75 related to factory operations, and 25 related to selling and administrative activities) Depreciation was recorded, $164,000 (60 related to factory assets, and 40 related to selling and administrative assets) Manufacturing overhead was applied to jobs at the rate of 105 of direct labour cost Goods that cost $505,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse Sales for the year totalled $920,000 and were all on account The total cost to manufacture these goods according to their job cost sheets was $520,000 Required 1 Prepare journal entries to record the transactions for the year (If no entry is required for a particular transaction, select No journal entry required in the first account field ) 2 Prepare T accounts for raw materials, work in process, finished goods, manufacturing overhead, and cost of goods sold Post the appropriate parts of your journal entries to these T accounts Compute the ending balance in each account (Do not forget to enter the beginning balances in the inventory accounts ) 3 a Is manufacturing overhead underapplied or overapplied for the year 3 b Prepare a journal entry to close this balance to cost of goods sold (If no entry is required for a particular transaction, select No journal entry required in the first account field ) 4 Prepare an income statement for the year

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

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


Raw materials	$	24,000
Work in process		19,600
Finished goods		47,600

During the year, the following transactions were completed:

Raw materials were purchased on account, $166,000.
Raw materials were issued from the storeroom for use in production, $168,000 (75% direct and 25% indirect).
Employee salaries and wages were accrued as follows: direct labour, $258,000; indirect labour, $81,200; selling and administrative salaries, $89,200.
Utility costs were incurred in the factory, $64,200.
Advertising costs were incurred, $99,200.
Prepaid insurance expired during the year, $19,200 (75% related to factory operations, and 25% related to selling and administrative activities).
Depreciation was recorded, $164,000 (60% related to factory assets, and 40% related to selling and administrative assets).
Manufacturing overhead was applied to jobs at the rate of 105% of direct labour cost.
Goods that cost $505,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
Sales for the year totalled $920,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $520,000.

Required:

1. Prepare journal entries to record the transactions for the year. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

2. Prepare T-accounts for raw materials, work in process, finished goods, manufacturing overhead, and cost of goods sold. Post the appropriate parts of your journal entries to these T-accounts. Compute the ending balance in each account. (Do not forget to enter the beginning balances in the inventory accounts.)

3-a. Is manufacturing overhead underapplied or overapplied for the year?

3-b. Prepare a journal entry to close this balance to cost of goods sold. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

4. Prepare an income statement for the year.