Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

heres the problems im having trouble with at the moment Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a

heres the problems im having trouble with at the moment
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $16,300 6,100 21,300 The following transactions occurred during January: (a) Purchased materials on account for $26,300. (b) Issued materials to production totaling $21,400, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. (c) Payroll costs totaling $18,400 were recorded as follows: $10,500 for assembly workers 2,700 for factory supervision 1,800 for administrative personnel 3,400 for sales commissions (d) Recorded depreciation: $4,800 for factory machines, $800 for the copier used in the administrative office. (e) Recorded $1,600 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. (0) Paid $5,700 in other factory costs in cash. (9) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. m Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,500 for direct materials, $2,300 for direct labor, and $4,600 for applied overhead. Sold jobs costing $52,000. The revenue earned on these jobs was $67,600 Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: a. Raw Materials Inventory b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling. General, and Administrative Expenses. g. Sales Revenue. 2. Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. 3. Determine the amount of over- or underapplied overhead, 4. Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post all amounts separately. Do not combine/add any dollar amounts when posting to the T-accounts.) a. Raw Materials Inventory, b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold. e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. 9. Sales Revenue. Show less Work in Process Inventory Beg. Bal Raw Materials Inventory 16,300 26,300 21,400 Beg. Bal. 6,100 End. Bal. 21,200 End. Bal. 6,100 Cost of Goods Sold Finished Goods Inventory 21,300 Beg. Bal Beg. Bal. End. Bal. 21,300 End. Bal. Manufacturing Overhead Selling, General, and Administrative Expenses Beg. Bal. Beg. Bal End. Bal. End. Bal. 0 Sales Revenue Beg. Bal. End. Bal. 0 Required 1 Required 2 Required 3 Required 4 Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. Unadjusted Gross Pront Required 1 Required 2 Required 3 Required 4 Determine the amount of over- or underapplied overhead. Manufacturing Overhead Required 1 Required 2 Required 3 Required 4 Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold. Adjusted Gross Profit

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

Cost Accounting Foundations And Evolutions

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

10th Edition

1618533533, 9781618533531

More Books

Students also viewed these Accounting questions