Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Foley Company uses a job - order costing system. The following information is available for the month of October 2 0 X 3 . Account
Foley Company uses a joborder costing system. The following information is available for the month of October X Account balances at st October X: Raw material inventory $ Finished goods inventory $ Raw materials purchased on account, $ Raw materials issued to production, $ Indirect material costs incurred, $ Direct labour cost incurred, $; and indirect labour cost incurred, $ Other manufacturing overhead costs incurred during October, $ The company applies manufacturing overhead cost to production on the basis of machine hours. Estimated total manufacturing overhead costs are $ for an estimated machine hours. A total of machine hours were recorded for October. Production orders that had cost $ to complete according to their job cost sheets were shipped to customers during the month. Account balances st October X: Work in process inventory $ Finished goods inventory $ Required: Complete the relevant T accounts provided on the next page to show the flow of costs through the companys manufacturing accounts and answer the questions provided.
i What was the ending balance for Raw material inventory?
ii What was the cost of goods manufactured?
iii. Was overhead underover applied during October and by how much?
iv Prepare the journal entry to adjust the underover applied overhead costs.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started