Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carpenter Cornices, Ltd., produces a wide variety of cornice moldings for windows at a plant located in Evergreen Park, llinois. Because there are hundreds of

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Carpenter Cornices, Ltd., produces a wide variety of cornice moldings for windows at a plant located in Evergreen Park, llinois. Because there are hundreds of products, some of which are made only to order, the company uses a job-order costing system. On July 1, the start of the company's fiscal year, inventory account balances were as follows: Raw materials Work in process Finished goods 11,400 $ 5,400 $ 9,100 The company applies overhead cost to jobs on the basis of machine-hours. Its predetermined overhead rate for the fiscal year starting July 1 was based on a cost formula that estimated $121,500 of manufacturing overhead for an estimated activity level of 45,000 machine-hours. During the year, the following transactions were completed (Assume all purchases and services were acquired on account): a. Raw materials purchased on account, $176,000. b. Raw materials requisitioned for use in production, $151,000 (materials costing $133,000 were chargeable directly to jobs; the remaining materials were indirect) c. Costs for employee services were incurred as follows: Direct labor Indirect labor Sales commissions Administrative salaries $ 98,000 $41,800 $ 28,000 $47,000 d. Prepaid insurance expired during the year, $21,500 ($15,100 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs incurred in the factory, $19,000 f. Advertising costs incurred, $12,200 g. Depreciation recorded on equipment, $26,000. ($19,000 of this amount was on equipment used in factory operations; the remaining $7,000 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $?. (The company recorded 32,000 machine-hours of operating time during the year.) Goods that had cost $300,000 to manufacture according to their job cost sheets were completed. j. Sales (all on account) to customers during the year totaled $549,000. These goods had cost $299,000 to manufacture according to their job cost sheets. 1. Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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

Auditing At The Speed Of Risk With An Agile Continuous Audit Plan

Authors: Norman Marks

1st Edition

B09PMBSWSC, 979-8787044393

More Books

Students also viewed these Accounting questions