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I hope someone can help me to solve these four questions. Thank you very much. SAMPSON COMPANY General Ledger Accounts Manufacturing Overhead Raw Materials Inventory
I hope someone can help me to solve these four questions. Thank you very much.
SAMPSON COMPANY General Ledger Accounts Manufacturing Overhead Raw Materials Inventory 10,000 1/1 Balance Work in Process Inventory (WIP) 15,000 Finished Goods Inventory 30,000 1/1 Balance 1/1 Balance Cost of Goods Sold Individual Job Cost Sheets (subsidiary ledgers to WIP) Job 102 Job 103 Bele Balance 15,000 + Direct Materials + Direct Labor + Applied OH Total Mix, Cost Sales Revenue Selling General, and Administrative Expenses Cash and Other Amets Payables and Other Liabilities 85,000 1/1 Balance 1/1 Balance 100.000 Stockholders' Equity 70,000 1/1 Balance During January, the company had the following transactions: (a) Purchased $10,000 worth of raw materials on account. (b) Issued the following materials into production: Cost Item Direct materials Indirect materials Total materials issued $7,000 2,000 $9,000 Explanation Job 102, $2,000; Job 103,55,000 Used on both jobs (c) Recorded salaries and wages payable as follows: Item Cost Direct labor Indirect labor Salaries Total payroll cost $10,000 4,000 5,000 $19.000 Explanation Job 102, 56,000, Job 103, $4,000 For factory supervision For administrative staff (1) Applied overhead to jobs based on the number of direct labor hours required: Job Number Job 102 Job 103 Total Direct Labor Hours 300 hours 200 hours 500 hours (e) Recorded the following actual manufacturing costs Item Rent Depreciation Insurance Utilities Total cost Cost $ 6,000 5,000 3,000 2,000 $16,000 Explanation Paid factory rent in cash Factory equipment Had one month of factory insurance policy expire Received factory utility bill but did not pay it Recorded the following general and administrative costs: Item Advertising Depreciation Other expenses Total cost Cost $2,000 3,000 1,000 $6,000 Explanation Advertising paid in cash Office equipment Micellaneous expenses incurred but not paid () Sold Job 101, which is recorded in Finished Goods Inventory at a cost of $30,000, for $55,000. ch) Completed Job 102 but did not sell it; Job 103 is still in process at year-end. 1. Compute and interpret the predetermined overhead rate. 2. How much overhead would be applied to jobs during the period? 3. Compute the total cost of Jobs 102 and 103 at the end of the period. Where would the cost of each of these jobs appear on the year-end balance sheet? 4. Prepare journal entries to record the January transactions and post the entries to the general ledger T-accounts given earlier in theStep by Step Solution
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