Question
Diewert Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January. 1. Purchased $75,000
Diewert Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January. 1. Purchased $75,000 of materials. 2. Incurred $84,000 for utilities, power, equipment maintenance, and other miscellaneous items pertaining to the production facility. 3. Issued $7,200 of supplies from the materials inventory. 4. Issued $81,000 in direct materials to the production department. 5. Direct labor costs of $77,000 were credited to Wages Payable. 6. Paid for the materials purchased in transaction (1). 7. $14,500 of indirect labor costs were credited to Wages Payable. 8. Applied overhead was assigned to products at the rate of 150 percent of direct labor costs. 9. Accrued depreciation on manufacturing property, plant, and equipment of $21,500. 10. Returned $3,200 of the supplies in transaction (3) to inventory. 11. Paid the for the wages incurred in transaction (5) The following balances appeared in the accounts of Ervin Equipment for January: Beginning Ending Materials Inventory $28,300 ? Work-in-Process Inventory $50,400 ? Finished Goods Inventory $179,200 $170,000 Cost of Goods Sold $245,600
Please hep me with these 5 questions. Thank you so much
Question 1: Determine the ending balance of Materials Inventory.
Question 2: Determine the total amount of manufacturing overhead incurred during the month.
Question 3: Determine the total amount of manufacturing overhead applied during the month before adjustments for over or under applied overhead.
Question 4: Determine the balance before adjustment of manufacturing overhead. Use a negative number to indicate a credit balance. Question 5: Suppose Diewerts accountant decides the MOH balance is material and allocates the amount to the downstream accounts: Work in Process, Finished Goods, and Cost of Goods sold on the basis of the pre-adjustment balances in each account. Determine the adjustment rate needed to close the MOH account and adjust the amount of MOH assigned to these accounts. Round to the nearest $0.0001
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