(g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1. 2020. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600. direct labor $12,360, and manufacturing overhead $16.480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15.450 balance in the Raw Materials Inventory account. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $125,660 and $162,740, respectively. The following additional events occurred during the month. 1. 2. 3. Purchased additional raw materials of $92,700 on account. Incurred factory labor costs of $72,100. Of this amount $16.480 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17.510 indirect labor $20.600 depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480. Assigned direct materials and direct labor to jobs as follows. 4 Job No. Direct Materials $10,300 50 Direct Labor $5,150 25,750 51 40.170 52 30.900 20.600 Calculate the predetermined overhead rate for 2020, assuming Cullumber Company estimates total manufacturing overhead costs of $865.200, direct labor costs of $721,000, and direct labor hours of 20.600 for the year. Predetermined overhead rate 120 % eTextbook and Media List of Accounts Attempts: 1 of 3 used (c) Your answer is correct 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory 92.700 Accounts Payable 92.700 (2) Factory Labor 72.100 Employer Payroll Taxes Payable 16,480 Factory Wages Payable 55,620 3) (3) Manufacturing Overhead 66,950 Raw Materials Inventory 17,510 Factory Labor 20,600 Accumulated Depreciation Equipment 12,360 Accounts Payable 16,480 Prepare the journal entries to record the assignment of (1) direct materials. (2) direct labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Work In Process Inventory 81,370 Raw Materials Inventory 81,370 (2) ) Work In Process Inventory 51,500 Factory Labor 51,500 (3) Work in Process Inventory 61,800 Manufacturing Overhead 61,800 Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg $ 20.600 $ 12,360 GA $ 16,480 Jan. 10.300 5,150 6.180 $ 30.900 $ 17,510 $ 22.660 Cost of completed job Direct materials $ 30.900 Direct labor 17.510 Manufacturing overhead 22,660 Total cost $ 71,070 Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 40.170 $ 25,750 $ 30.900 $ 40.170 $ 25,750 $ 30.900 Cost of completed job Direct materials $ 40,170 Direct labor 25.750 Manufacturing overhead 30.900 Total cost $ 96,820 Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $ 30.900 $ 20,600 $ 24,720 Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) Accounts Recevable 288,400 Sales Revenue 288,400 (To record sale of jobs) (2) Cost of Goods Sold 163,770 Finished Goods Inventory 163.770 (To record cost of jobs) (g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of? Finished Goods Inventory $
