Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Plate Construction organized in December and recorded the following transactions during its first month of operations. Dec. 2 Purchased materials on account for $400,000.

Blue Plate Construction organized in December and recorded the following transactions during its first month of operations. Dec. 2 Purchased materials on account for $400,000. Dec. 3 Used direct materials costing $100,000 on job no. 100. Dec. 9 Used direct materials costing $150,000 on job no. 101. Dec. 15 Used direct materials costing $30,000 on job no. 102. Dec. 28 Applied the following direct labor costs to jobs: job no. 100, $9,000; job no. 101, $11,000; job no. 102, $5,000. Dec. 28 Applied manufacturing overhead to all jobs at a rate of 300% of direct labor dollars. Dec. 29 Completed and transferred job no. 100 and job no. 101 to the finished goods warehouse. Dec. 30 Sold job no. 100 on account for $200,000. Dec. 31 Recorded and paid actual December manufacturing overhead costs of $78,000, cash. Dec. 31 Closed the Manufacturing Overhead account directly to Cost of Goods Sold

. a. Prepare journal entries for each of the above transactions.

b. Compute the amount at which Cost of Goods Sold is reported in the company's income statement for the month ended December 31.

c. Determine the inventory balances reported in the company's balance sheet dated December 31.

d. Was manufacturing overhead in December overapplied, or was it underapplied?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Her Majestys Auditor An Adventure Novel With Steampunk Elements

Authors: Markus Pfeiler

1st Edition

164953339X, 978-1649533395

More Books

Students also viewed these Accounting questions

Question

why would you use the highest ohm scale on the meter

Answered: 1 week ago

Question

What is the formula to calculate the mth Fibonacci number?

Answered: 1 week ago