Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year Raw materials Work in process Finished Goods Beginning Ending Balance Balance $14,750 22,750 $ 27,750 9,750 62,750 $ 77,750 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 33750 machine-hours and incur $286,875 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,750. Raw materials were requisitioned for use in production, $307,750 ($280,250 direct and $27.500 indirect). yee costs were incurred: direct labor, $377,750; indirect labor, $96,750; and administrative salaries, $ 172,750. Selling costs, $147,750 Factory utility costs, $10,750. Depreciation for the year was $172,000 of which $158,000 is related to factory operations and $14,000 is related general, and administrative activities. to selling, rhead was applied to jobs. The actual level of activity for the year was 34,150 machine-hours. Sales for the year totaled $1,305,000. Required: a. Prepare a schedule of cost of goods manufactured b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the table below Required A Required B Required C Prepare a schedule of cost of goods manufactured. (Round your intermediate calculations to 2 decimal places.) Baab Corporation Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured Required B> Complete this question by entering your answers in the table below. Required A Required B Required C Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Baab Corporation Income Statement Selling and administrative expenses Required B Required c x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started