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Could someone please answer all of these for me? Carpenter Cornices, Ltd., produces a wide variety of cornice moldings for windows at a plant located
Could someone please answer all of these for me?
Carpenter Cornices, Ltd., produces a wide variety of cornice moldings for windows at a plant located in Evergreen Park, Illinois. 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 10,900 $ 4900 $ 8,600 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 $101 ,200 of manufacturing overhead for an estimated activity level of 46,000 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, $166,000 b. Raw materials requisitioned for use in production, $146,000 (materials costing $125,500 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 $ 93,000 39,300 $25,500 44,500 d. Prepaid insurance expired during the year, $19,000 (14,100 of this amount related to factory operations, and the remainder related to selling and administrative activities) e. Utility costs incurred in the factory, $16,500 f. Advertising costs incurred, $11,200 g. Depreciation recorded on equipment, $21,000. ($16,500 of this amount was on equipment used in factory operations; the remaining $4,500 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $2 The company recorded 40,000 machine-hours of operating time during the year.) i. Goods that had cost $290,000 to manufacture according to their job cost sheets were completed j. Sales (all on account) to customers during the year totaled $524,000. These goods had cost $289,000 to manufacture according to their job cost sheetsStep by Step Solution
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