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I need entries journalized Information and Data White Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as
I need entries journalized
Information and Data White Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: 10 11 12 Raw Materials $ 20,000 13 Work in Process $ 15,000 14 Finished Goods $ 30,000 15 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rates was based on a cost forumulat 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 16 7 8 A Raw materials were purchased on account, $410,000. B. Raw materials were used in production, $380,000 ($360,000 direct materials and $20,000 9 indirect materials) C. 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. 20 D. Sales travel costs (on account) were $17,000. 21 24 22 E. Utility costs on account) in the factory were $43,000. 23 F Advertising costs (on account) were $180,000 G. Depreciation was recorded for the year, $350,000 ($280,000 relates to factory assets and $70,000 relates to selling and administrative assets). H. Insurance expired during the year, $10,000 ($7,000 relates to factory operations and the 25 remaining relates to selling and administrative activities. L. 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. 26 J. Jobs costing $900,000 to manufacture according to their job cost sheets were completed during the year K Jobs were sold on account to customers during the year for a total of $1,500,000. The jobs cost $870,000 to manufacture according to their job cost sheets. 28 29 L Close out entry to for Underapplied / Overapplied Manufacturing Overhead (as stated in item 3 above) 30 27 1 General Journal Page 1 Post Ref 2 Date Account Titles Debit Credit 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Step by Step Solution
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