Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Information on Kwon Manufacturings activities for its first month of operations follows: Purchased $100,400 of raw materials on credit. Materials requisitions show the following materials

Information on Kwon Manufacturings activities for its first month of operations follows:

  1. Purchased $100,400 of raw materials on credit.
  2. Materials requisitions show the following materials used for the month.

Job 201 $ 48,600
Job 202 24,000
Total direct materials 72,600
Indirect materials 9,020
Total materials used $ 81,620

  1. Time tickets show the following labor used for the month.

Job 201 $ 39,600
Job 202 13,000
Total direct labor 52,600
Indirect labor 24,600
Total labor used $ 77,200

  1. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
  2. Transferred Job 201 to Finished Goods Inventory.
  3. (1) Sold Job 201 for $164,960 on credit. (2) Record cost of goods sold for Job 201.
  4. Incurred the following actual other overhead costs for the month.

Depreciation of factory equipment $ 32,400
Rent on factory building (payable) 540
Factory utilities (payable) 840
Expired factory insurance 3,400
Total other factory overhead costs $ 37,180

1. Prepare a job cost sheet for Job 201 and for Job 202 for the month. 2. Compute gross profit on the sale of Job 201.

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

Research On Professional Responsibility And Ethics In Accounting Volume 24

Authors: Charles Richard Baker

1st Edition

180071758X, 9781800717589

More Books

Students also viewed these Accounting questions

Question

How can speakers manage speaking anxiety?

Answered: 1 week ago

Question

To what extent is public speaking similar to conversation?

Answered: 1 week ago