Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1. 2025 ,

image text in transcribed
image text in transcribed
image text in transcribed
Crane Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1. 2025 , Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $25,200, direct labor $15,120, and manufacturing overhead $20,160. As of January 1, Job 49 had been completed at a cost of $113,400 and was part of finished goods inventory. There was a $18,900 balance in the Raw Materials Inventory account on January 1. During the month of January. Crane Company began production on Jobs 51 and 52 , and completed Jobs 50 and 51 . Jobs 49 and 50 were sold on account during the month for $153,720 and $199,080, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $113,400 on account. 2. Incurred factory labor costs of $88,200. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment \$15,120; and various other manufacturing overhead costs on account $20,160. 4. Assigned direct materials and direct labor to jobs as follows. 5. Assigned indirect materials of $21,420 and indirect labor of $25,200. (a) Calculate the predetermined overhead rate for 2025, assuming Crane Company estimates total manufacturing overhead costs of $1,058,400, direct labor costs of $882,000, and direct labor hours of 25,200 tor the year. Predetermined overhead rate % Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually)

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_2

Step: 3

blur-text-image_3

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

The Logistics Audit Methods Organization And Practice

Authors: Piotr Buła, Bartosz Niedzielski

1st Edition

1032461268, 978-1032461267

More Books

Students also viewed these Accounting questions

Question

5. If yes, then why?

Answered: 1 week ago

Question

6. How would you design your ideal position?

Answered: 1 week ago