Question
Gibson Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, 2018, the company had the following account balances: $88,000
Gibson Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, 2018, the company had the following account balances: $88,000 for both cash and common stock. In 2018, Gibson worked on three jobs. The relevant direct operating costs follow: Direct Labor Direct Materials Job 1 $ 4,300 $ 5,300 Job 2 2,100 2,200 Job 3 8,400 3,700 Total $ 14,800 $ 11,200 Gibsons predetermined manufacturing overhead rate was $.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $5,672. Gibson paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $16,100 cash and Job 2 for $8,100 cash. Gibson also paid $3,300 cash for selling and administrative expenses for the year. Gibson uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required Record the preceding events in a horizontal statements model. The first row shows beginning balances. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. Determine the gross margin for the year.
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Auditing In The Food Industry From Safety And Quality To Environmental And Other Audits
Authors: M Dillon, C Griffith
1st Edition
1855734508, 978-1855734500
