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I dont get this one. I need help with this problem please and thank you. Baab Corporation is a manufacturing firm that uses job-order costing.
I dont get this one. I need help with this problem please and thank you.
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: Raw materiala Work in process Finished Goods Beginning Balance $14,450 $ 27,450 $ 62.450 Ending Balance $22,450 $9, 450 $ 77,450 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 33,450 machine-hours and incur $264.255 in manufacturing overhead cost. The following transactions were recorded for the year. Raw materials were purchased, $315,450. Raw materials were requisitioned for use in production, $307,450 ($280,550 direct and $26,900 Indirect). The following employee costs were incurred: direct labor, $377,450; indirect labor, $96,450; and administrative salaries, $172,450 Seling costs, $147.450 Factory utility costs, $10,450. Depreciation for the year was $154,000 of which $138,000 is related to factory operations and $16,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,090 machine-hours. Sales for the year totaled $1,271,000. . . Required: a. Prepare a schedule of cost of goods manufactured 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. Complete this question by entering your answers in the table below. Required A Required B Required Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Cost of Goods Manufactured Direct materials Total raw materials available Total Raw materials used in production Direct materials used in production Total manufacturing costs added to production 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: Raw materials Work in process Pinished Goods Beginning Balance $ 14,450 $ 27.450 $ 62,450 Ending Balance $ 22,450 $ 9,450 $ 77,450 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 33,450 machine-hours and incur $264.255 in manufacturing overhead cost. The following transactions were recorded for the year, Raw materials were purchased, $315,450. Raw materials were requisitioned for use in production, $307,450 ($280,550 direct and $26,900 indirect). The following employee costs were incurred: direct labor, $377.450; indirect labor, $96,450; and administrative salaries, $172,450. Selling costs, $147.450 Factory utility costs, $10,450. Depreciation for the year was $154,000 of which $138,000 is related to factory operations and $16.000 is related to selling. general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,090 machine-hours. Sales for the year totaled $1,271,000 . . Required: a. Prepare a schedule of cost of goods manufactured b. Was the verhead 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. Complete this question by entering your answers in the table below. Required A Required B Required Was the overhead underapplied or overappiled? By how much? 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. Beginning Ending Raw materials Work in process Finished Goods Balance $14,450 $ 27,450 $62,450 Balance $ 22,450 $ 9,450 $77.450 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 33,450 machine-hours and incur $264,255 in manufacturing overhead cost. The following transactions were recorded for the year. Raw materials were purchased. $315,450. Raw materials were requisitioned for use in production, $307,450 ($280,550 direct and $26,900 Indirect). The following employee costs were incurred direct labor, $377450; Indirect labor. $96.450; and administrative salaries, $172,450. Selling costs, $147.450 Factory utility costs, $10.450. Depreciation for the year was $154,000 of which $138,000 is related to factory operations and $16,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,090 machine-hours. Sales for the year totaled $1,271,000. . Required: a. Prepare a schedule of cost of goods manufactured. 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. Complete this question by entering your answers in the table below. Required A Required B Required C Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold Baab Corporation Income Statement Selling and administrative expenses Step by Step Solution
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