Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Corporation's fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of

Crane Corporation's fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other data:

1. On December 1, two jobs were in process: Job No. 154 and Job No. 155. These jobs had combined direct materials costs of $12,285and combined direct labor costs of $18,900. Overhead was applied at a rate that was 75% of direct labor cost.
2. During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $4,788and direct labor $6,048, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December.
3. On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $6,300. On December 31, Job No. 157 was the only finished job that was not sold. It had a cost of $5,040.
4. Manufacturing overhead was $1,866 underapplied in December.

List the letters (a) through (m) and indicate the amount pertaining to each letter.

Raw Materials Inventory
Dec. 1 Beginning balance

enter a debit amount

(a) Dec. 31 Requisitions 21,231
31 Purchases 21,715
Dec. 31 Ending balance 10,060
Work in Process Inventory
Dec. 1 Beginning balance

enter a debit amount

(b) Dec. 31 Jobs completed

enter a credit amount

(f)
31 Direct materials

enter a debit amount

(c)
31 Direct labor 10,584
31 Overhead

enter a debit amount

(d)
Dec. 31 Ending balance

enter a debit balance

(e)
Finished Goods Inventory
Dec. 1 Beginning balance

enter a debit amount

(g) Dec. 31 Cost of goods sold

enter a credit amount

(i)
31 Jobs completed

enter a debit amount

(h)
Dec. 31 Ending balance

enter a debit balance

(j)
Factory Labor
Dec. 31 Factory wages 15,163 Dec. 31 Wages assigned

enter a credit amount

(k)
Manufacturing Overhead
Dec. 31 Indirect materials 3,654 Dec. 31 Overhead applied

enter a credit amount

(m)
31 Indirect labor

enter a debit amount

(l)
31 Other overhead 1,571

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

Introduction to Managerial Accounting

Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

4th Canadian edition

978-1259103261

More Books

Students also viewed these Accounting questions