Question
Journal entries Nottaway Flooring produces custom-made floor tiles. The companys Raw Material Inventory account contains both direct and indirect materials. Until the end of April
Journal entries
Nottaway Flooring produces custom-made floor tiles. The companys Raw Material Inventory account contains both direct and indirect materials. Until the end of April 2013, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations.
1. Raw material purchased on account, $204,000.
2. Direct material issued to Job #4263 cost $163,800; indirect material issued for that job cost $12,460. Direct material costing $1,870 was issued to start production of Job #4264.
3. Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct labor employees were paid $15 per hour.
4. Actual factory overhead costs incurred for the month totaled $68,700. This overhead consisted of $18,000 of supervisory salaries, $21,500 of depreciation charges, $7,200 of insurance, $12,500 of indirect labor, and $9,500 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued.
5. Overhead is applied to production at the rate of $18 per direct labor hour. Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $4,300 and $11,400. Of the beginning WIP balance, $800 was related to Job #4263. Job #4263 was completed during April. a.
Part 1: Prepare journal entries for each transaction. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Sample format:
#1.
Raw material(debit) | 204,000 |
Accounts payable (credit) | 204,000 |
#2
WIP #4263 (debit) | 163,800 |
WIP #4264 (debit) | 1,870 |
MANUFAC. OVERHEAD (debit) | 12,460 |
RAW MATERIAL INVENTORY (credit) | 178,130 |
Part 2: Please help to solve and show work. Part b & c answers given but please show work. Thank you.
b.Determine the balance in Raw Material Inventory at the end of the month. $ answer= 30,170
c. Determine the balance in Work in Process Inventory at the end of the month. $ answer=16,430
d. Determine the cost of the goods manufactured during April. $
If completed goods consist of 10,000 similar units, what was the cost per unit? If required, round your answer to the nearest cent. $ per unit
e. What is the amount of underapplied or overapplied overhead at the end of April?
answer=overhead is underapplied, please determine by what amount
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