Chis Case Study Assignment - Part 2 2. Starwood Company purchases $650.000 in materials on account b. Suurwood Company incurs $275,000 in factory labor costs paid in cash. c. Surwood Company's manufacturing overhead consisted of depreciation en equipment for $275,000 and miscellaneous costs of 135.000 incurred on account Starwood Company assigns materials to production: $245,000 for Job 101. $190,000 for Job 102 and S105,000 for general use c Starwood Company assigas labor to production : $135,000 for Job 101, $95.000 for Job 102, and $45.000 for general use Compute applied manufacturing overhead as 200% of direct labor cost Record entry for applied manufacturing overhead 8. Record entry for completed cost of goods manufactured for Job 101 h. Surwood Company sells Job 101 for $975,000 cash. Record sales entry which includes cost of goods sold for Job 101. i Record the entry to close-out the over- or under-applied manufacturing overhead amount at the end of the period. 1. Prepare journal entries in proper format for Starwood Company. Account Name Dahil Credit Starwood Company purchases $650,000 in materials on account b Account Name Detail Credit Starwood Company incurs $275,000 in factory labor casts paid in cash Account Name Dahil Credit Starwood Company's manufacturing overhead consisted of depreciation on quipment for S275,000 and mascellaneous costs of S135.000 incurred on account d. Account Name Debil Credi Starwood Company assigas materials to production: $245,000 for Job 101, $190,000 for Job 102, and $105,000 for general se . Account Nam Dahil Starwood Company assigns tabor to production : $135,000 for Job 101, 895,000 for Job 102 and 45,000 for general use Starwood Company assigns labor to production : 5135,000 for Job 101. 95.000 for Job 102, and $45,000 for general use Account Name Debit Credit Compute applied manufacturing overhead as 200% of direct labor costs Record entry for applied manufacturing overhead. - Account Nam Debil Credit Record entry for completed cost of goods manufactured for Job 101 h. Account Name Debil Credit Starwood Company sells Job 101 for $975.000 cash. Record sales entry which includes cost of goods sold for Job 101. 1 Account Name Debut Credit Record the entry to close-out the over or under-applied manufacturing overhead amount at the end of the period. 2. Instructions for Posting (200 to 300 words - 6pts): a. Provide an explanation and example for Direct Labor and Indirect Labor b. Explain the difference between Actual Manufacturing Overhead incurred and estimated Applied Manufacturing Overhead. c. Describe the Work-in-Process Inventory Account and include: 1- What transactions include a debit to the Work-in-Process Inventory Account 2- What transactions include a credit to the Work-jn-Process Inventory Account Upload and attach your completed excel file to your posting 3. Instructions for Reply to another student (100 to 200 words - 10pts 1. Choose a student to reply to that completed a different part than you did for your posting * Please remember. A limit of two students allowed to reply to another student's posting b. Review the other student's journal entry problem and posting to explain 1- If you would prepare the same or different journal entries for the other student's trumactices 2. Mcaningful details of what you came from the reviewing the other student's posting *Alternate b.2-4 Or you can explain the three main manufacturing costs (productos and the two main period costs. Make sure to provide a description and an example for each cose
