Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct labour $161,668 Indirect labour $ 27,498 Sales commissions $ 36,660 Administrative salaries $ 88,886 d. Heat, power, and water costs were incurred in the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Direct labour $161,668 Indirect labour $ 27,498 Sales commissions $ 36,660 Administrative salaries $ 88,886 d. Heat, power, and water costs were incurred in the factory: $42,900. e. Prepaid insurance expired during the year: $11,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). f. Advertising costs were incurred, $51,000. 9. Depreciation was recorded for the year: $61,200 (90% relates to factory operations, and 10% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,400 machine-hours for the year. i. Goods that cost $488,700 to manufacture according to theirjob cost sheets were transferred to the nished goods warehouse. j. Sales for the year totalled $709,300 and were all on account. The total cost to manufacture these goods according to theirjob cost sheets was $483,300. Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Ravsten Company uses ajoborder costing system. On January 'I, the beginning of the current year, the company's inventory balances were as follows: Raw materials $17,666 work in process $16,466 Finished goods $36,266 The company applies overhead cost tojobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,200 machine-hours and incur $157,470 in manufacturing overhead cost. The following transactions were recorded for the year a. Raw materials were purchased on account: $204,000. b. Raw materials were requisitioned for use in production: $192,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour $161,666 Indirect labour $ 27,466 Sales commissions $ 36,666 Administrative salaries $ 86,866 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from yourjournal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. 3-a. Is manufacturing overhead underapplied or overapplied for the year? O Overapplied overhead O Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account

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

Comprehensive Assurance & Systems Tool

Authors: Laura IngrahamJ Jenkins

2nd Edition

0131377213, 9780131377219

More Books

Students also viewed these Accounting questions

Question

=+b) Is the process for making baseballs in control?

Answered: 1 week ago

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago