Hogle Corporation is a manufacturer that uses job order costing On January 1, the beginning of its fiscal year, the company's inventory balances were as follows Raw materials Work in process Finished goods $20,000 $15,000 $30,000 The company applies overhead cost to jobs on the basis of machine hours worked For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine hours The following transactions were recorded for the year 1) Raw materials were purchased on account, $410,000 2) Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials) 3) The following costs were accrued for employee services direct labor, $75,000 indirect labor, $110,000 sales commissions, $90,000 and administrative salaries, $200,000 4) Sales travel costs were $17,000 5) Utility costs in the factory were $43,000 6) Advertising costs were $180,000 7) Depreciation was recorded for the year, $350,000 (80 relates to factory operations, and 20 relates to selling and administrative activities) 8) Insurance expired during the year, $10,000 (70 relates to factory operations, and the remaining 30 relates to selling and administrative activities) 9) Manufacturing overhead was applied to production Due to greater than expected demand for its products, the company worked 80,000 machine hours on all jobs during the year 10) Goods costing $900,000 to manufacture according to their job cost sheets were completed during the year 11) Goods were sold on account to customers during the year for a total of $1,500,000 The goods cost $870,000 to manufacture according to their job cost sheets Required 1) Prepare journal entries to record the preceding transactions 2) Post the entries in (1) above to T accounts (don't forget to enter the beginning balances in the inventory accounts) Case Account Titles Debit Credit T accounts TTTT

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Hogle Corporation is a manufacturer that uses job order costing  On January 1, the beginning of its fiscal year, the company's inventory balances were as follows  Raw materials        Work in process         Finished goods         $20,000 $15,000 $30,000 The company applies overhead cost to jobs on the basis of machine hours worked  For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine hours  The following transactions were recorded for the year  1) Raw materials were purchased on account, $410,000  2) Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials)  3) The following costs were accrued for employee services  direct labor, $75,000  indirect labor, $110,000  sales commissions, $90,000  and administrative salaries, $200,000  4) Sales travel costs were $17,000  5) Utility costs in the factory were $43,000  6) Advertising costs were $180,000  7) Depreciation was recorded for the year, $350,000 (80  relates to factory operations, and 20  relates to selling and administrative activities)  8) Insurance expired during the year, $10,000 (70  relates to factory operations, and the remaining 30  relates to selling and administrative activities)  9) Manufacturing overhead was applied to production  Due to greater than expected demand for its products, the company worked 80,000 machine hours on all jobs during the year  10) Goods costing $900,000 to manufacture according to their job cost sheets were completed during the year  11) Goods were sold on account to customers during the year for a total of $1,500,000  The goods cost $870,000 to manufacture according to their job cost sheets  Required  1) Prepare journal entries to record the preceding transactions  2) Post the entries in (1) above to T accounts (don't forget to enter the beginning balances in the inventory accounts)  Case  Account Titles Debit Credit T accounts TTTT

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Hogle Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal

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