Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me please i upvote Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning

help me please i upvote
image text in transcribed
image text in transcribed
image text in transcribed
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: - The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,800 machine-hours and incur $290,680 in manufacturing overhead cost. The following transactions were recorded for the year: - Raw materials were purchased, $315,800. - Raw materials were requisitioned for use in production, $307,800($280,200 direct and $27,600 indirect). - The following employee costs were incurred, direct labor, $377,800; indirect labor, $96,800; and administrative salaries. $172,800 - Selling costs, $147,800. - Factory utility costs, $10,800. - Depreciation for the year was $175,000 of which $170,000 is related to factory operations and $5,000 is related to seiling. general, and administrative activities. - Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,160 machine-hours. - Sales for the year totaled $1,310,000. Required: a. Prepare a schedule of cost of goods manufactured. Hint: You will have Materials Used in Production AND Indirect Materials Used. Make sure you remember both when doing this schedule. b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. HINT: Leave 2 blank lines under the expenses section description (first column). Please remember this when you are entering your answers! The next to the last line's last column should be a total cost for expenses with NO description. Hope this helps (dgd) Complete this question by entering your answers in the table below. Prepare ab income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the table below. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold

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_2

Step: 3

blur-text-image_3

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

ISO 9001 2015 Audit Procedures

Authors: Ray Tricker

4th Edition

1138025895, 978-1138025899

More Books

Students also viewed these Accounting questions

Question

2. Clearly identify time constraints.

Answered: 1 week ago

Question

What attracts you about this role?

Answered: 1 week ago

Question

How many states in India?

Answered: 1 week ago

Question

HOW IS MARKETING CHANGING WITH ARTIFITIAL INTELIGENCE

Answered: 1 week ago