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Bakerston Company 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:
Bakerston Company 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: 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 17,700 machine-hours and incur $283,200 in manufacturing overhead cost. The following transactions were recorded for the year: - Raw materials were purchased, $412,000. - Raw materials were requisitioned for use in production, $407,700 ( $385,000 direct and $22,700 indirect). - The following employee costs were incurred: direct labor, $336,000; indirect labor, $72,000; and administrative salaries, $157,000. - Selling costs, $114,000. - Factory utility costs, $23,000. - Depreciation for the year was $128,000 of which $115,000 is related to factory operations and $13,000 is related to selling, general, and administrative activities. - Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,400 machine-hours. - Sales for the year totaled $1,287,000. Required: a.Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the "\$" sign in your response.) b .Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. (Input all amounts as positive values. Omit the "\$" sign in your response.)
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