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- Compute Erkens Companys predetermined overhead rate for the year.
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Predetermined overhead rate |
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- Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.)
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Journal entry worksheet Purchased 180,000 pounds of materials on account; the cost was $5.00 per pound. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Issued 120,000 pounds of materials to production, of which 15,000 pounds were used as indirect materials. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Incurred direct labor costs of $240,000 and $40,000 of indirect labor costs. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Recorded depreciation on equipment for the month, $75,700. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Recorded insurance costs for the manufacturing property, $3,500. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Paid $8,500 cash for utilities and other miscellaneous items for the manufacturing plant. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Completed Job H11 costing $7,500 and Job G28 costing $77,000 during the month and transferred them to the Finished Goods Inventory account. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Record the cost of the Job G28 which was shippped to the customer during the month. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Record the invoice issued for Job G28. The sale was made at 35% above cost. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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Used 7,700 machine-hours during April. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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3-a. Compute the amount of overapplied or underapplied overhead.
3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.) Journal entry worksheet Record the entry to close the overhead account. Note: Enter debits before credits.
Transaction | General Journal | Debit | Credit |
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