Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Horton Company uses a job casting system, and manufacturing overhead is applied on the basis of machine hours. At the beginning of the year, management

image text in transcribed
Horton Company uses a job casting system, and manufacturing overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur 51,050,000 of manufacturing overhead costs and use 70,000 machine hours. Horton Company recorded the following events during the month of March 0 Purchased 200.000 kilograms of raw materials on account. The cost was 54.00 per kilogram Issued 150.000 kilograms of materials to production Assume all materials issued are at 54 per kilogram. incurred $250,000 of direct labour costs and $50,000 of indirect labour costs Recorded depreciation on equipment for the month $18,000, M Recorded $2,000 of insurance costs for the manufacturing property (v) Recorded 535,000 for utilities and other miscellaneous items for the manufacturing plant. (Completed job M11 costing $170,000 and job M12 costing $800,000 during the month. (Shipped job M12 to the customer during the month Used 10,000 machine hours during March Ronal 13 $100.000) 13 550.000 d) Bal 10 el a Tel. 330,000 Cost of Good NO . P Useste 1.000 Required: Cimte the accounts providing the amounts of a ton to show the flow of costs through the company's manufacturing account (NB: No entry is required to close the amount of oveunder applied in this part of the sono marta WW overhead under over applied during Manuary and by how much 2 mars Horton Company uses a job casting system, and manufacturing overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur 51,050,000 of manufacturing overhead costs and use 70,000 machine hours. Horton Company recorded the following events during the month of March 0 Purchased 200.000 kilograms of raw materials on account. The cost was 54.00 per kilogram Issued 150.000 kilograms of materials to production Assume all materials issued are at 54 per kilogram. incurred $250,000 of direct labour costs and $50,000 of indirect labour costs Recorded depreciation on equipment for the month $18,000, M Recorded $2,000 of insurance costs for the manufacturing property (v) Recorded 535,000 for utilities and other miscellaneous items for the manufacturing plant. (Completed job M11 costing $170,000 and job M12 costing $800,000 during the month. (Shipped job M12 to the customer during the month Used 10,000 machine hours during March Ronal 13 $100.000) 13 550.000 d) Bal 10 el a Tel. 330,000 Cost of Good NO . P Useste 1.000 Required: Cimte the accounts providing the amounts of a ton to show the flow of costs through the company's manufacturing account (NB: No entry is required to close the amount of oveunder applied in this part of the sono marta WW overhead under over applied during Manuary and by how much 2 mars

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

Step: 3

blur-text-image

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

Financial Accounting Standards Board Webster S Timeline History 1971 2006

Authors: Icon Group International

1st Edition

0546876501, 978-0546876505

More Books

Students also viewed these Accounting questions

Question

b. What happens to the world interest rate?

Answered: 1 week ago