Her System Announcements CALCULATOR PRINTER VERSION Exercise 4-17 The following events occurred over the course of a year at Crane Corp., which uses a job order costing system: 1. Direct materials purchases totaled $400,000. Crane Corp tracks its direct materials separately from its indirect materials. Purchases were made on account. 2. $230,000 of indirect materials were used in production. Crane uses a separate Supplies Inventory account for indirect materials. 3. $413,000 of direct materials were used in production. 4. The direct labor payroll was $940,000 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $540,000. 6. Crane applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,000 machine hours during the year. 7. During the year, Crane transferred goods costing $2,051,000 Into the Finished Goods Inventory account. 8. Crane sold products with a manufacturing cost of $2,000,000 to customers during the year. Your answer is partially correct. Try again. Prepare journal entries to record these events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Post entries in ord in the problem.) No. Account Titles and Explanation Debit Credit 1. Direct Materials Inventory Accounts Payable (To record purchase of direct materials) 2. Work in Process Inventory Supplies Inventory (To record use of indirect materials in production) Work in Process Inventory Direct Materials Inventory URCES Work in Process inventory CALCULATOR PRINTE Direct Materials Inventory (To record use of direct materials in production) Work in Process Inventory tudy Wages Payable (To record direct labor payroll) R 5. Manufacturing Overhead - Accounts Payable (To record actual manufacturing overhead) 6. Work in Process Inventory Manufacturing Overhead (To record applied manufacturing overhead) 7. Finished Goods Inventory Work in Process Inventory (To record transfer of completed goods to Finished Goods Inventory) 8. Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold for the period) SHOW LIST OF ACCOUNTS CALORATOR PRINTER VERSION LACK Prepare T-accounts for the following accounts: Direct Materials Inventory, Work In Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transaction part () in the T-accounts and calculate ending account balances. Assume the following beginning account balances (Post entries in order presented in the problem): Account Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Balance $19,000 $10,000 $30,000 Bale Direct Materials Inventory 19000 400000 (3) m 413000 Bal. Work in Process Inventory bo Manufacturing Overhead (6) LU DAVIS, Managerial Accounting, 3e Help System Announcements RCES Bal. Finished Goods Inventory edy SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO x Your answer is incorrect. Try again. Was overhead under- or overapplied for the year? By how much? Overhead was underapplied Click if you would like to Show Work for this question: Open Show W SHOW LIST OF ACCOUNTS VIDEO SIMILAR EXERCISE LINK TO TEXT LINK TO TEXT SAVE FOR Question Attempts: 1 of 3 used