Job Cost Journal Entries and T Accounts

Following are certain operating data for Redwood Manufacturing Company for January 2016:

	Materials Inventory	Work in Process Inventory	Finished Goods Inventory
Beginning inventory	$40,000	$50,000	$80,000
Ending inventory	70,000	60,000	56,000

Total sales were $2,000,000, on which the company earned a 40% gross profit. Redwood uses a predetermined manufacturing overhead rate of 110% of direct labor costs. Manufacturing overhead applied was $396,000. Exclusive of indirect material used, total manufacturing overhead incurred was $300,000; it was under-applied by $24,000.

Required

Compute the following items. (Set up T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead; fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.)

Job Cost Journal Entries and T Accounts Following are certain operating data for Redwood Manufacturing Company for January 2016 Materials Inventory Work in Process Inventory Finished Goods Inventory $80,000 56,000 Beginning inventory $40,000 $50,000 Ending inventory 70,000 60,000 Total sales were $2,000,000, on which the company earned a 40% gross profit. Redwood uses a predetermined manufacturing overhead rate of 1 10% of direct labor costs. Manufacturing overhead applied was $396,000. Exclusive of indirect material used total manufacturing overhead incurred was $300,000: it was under-applied by $24,000 Required Compute the following items. (Set up T accounts for Materials Inventory. Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead: fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.) a. Cost of goods sold b. Cost of goods manufactured C. Direct labor incurred d. Direct material used e. Indirect material used f. Total materials purchased Materials Inventory 40,000 0 (d) bal 0 (e) End bal