Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Klein Corporation uses a job order costing system. On April 1, 2021, the company had the following account balances: Raw Material Inventory (include direct and

image text in transcribed
image text in transcribed
image text in transcribed
Klein Corporation uses a job order costing system. On April 1, 2021, the company had the following account balances: Raw Material Inventory (include direct and indirect material) $ 58,900 Work-in-Process Inventory 118,140 Finished Goods Inventory 75,600 On April 1, Job #44 was the only job in Finished Goods (FG) Inventory. On April 1, the three jobs in Work-in-Process (WIP) Inventory had the following balances: Job #45 $ 51,340 Job #46 24,080 Job #47 42,720 The following transactions occurred during April: 1. Purchased $88,000 of raw materials (direct and indirect) on account. 2. Issued $75,240 of raw material as follows: Job #45 $ Job #46 $13,420 Job #47 $45,090 Job #48 $14,460 Indirect material $ 2,270 3. Prepared and paid $93,100 factory payroll for the month. Analysis of this payroll showed the following information Job #45 650 direct labor hours (DLHS) $13,000 Job #46 1,295 DLHS $25,900 Job #47 995 DLHs $19,900 Job #48 620 DLHS $12,400 Indirect labor wages $21,900 4. The firm applied manufacturing overhead to jobs at a rate of $11 per direct labor hour. 5. Jobs #45 and #46 were completed during the month 6. Jobs #44 and #45 were shipped, accepted by the customers, and billed at a selling price of 145 percent of their cost. 7. Incurred other manufacturing overhead and selling and administrative costs for April Property taxes for the factory building. $1,870, and for the office buildings, $1,300. The tax bills are due in July 2021. Depreciation of manufacturing property, plant, and equipment, $13,750. Monthly insurance costs for manufacturing assets, $4,045, and for non-manufacturing assets, $7,500. Insurance was prepaid in November 2020 for the 12-month period ended in October 2021 Shipping charges to deliver finished orders to customers, $3,500. Freight bills received in the month will be paid in the following month. Factory utilities cost, $2,100, will be paid in May 2021. 8. Close under- or over-applied manufacturing overhead to Cost of Goods Sold Required: A. (14 points) Prepare journal entries for April to record transactions 1-8. Use summary entries where appropriate by combining individual job data and items. B. (3 points) Compute the following ending balances as of April 30 by showing the relevant t-accounts. For each t-account, show the balance on April 1, all postings during April, and the balance on April 30. 1. Raw Materials Inventory 2. Work-in Process Inventory 3. Finished Goods Inventory

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

Current Issues In Auditing

Authors: Michael J Sherer, W Stuart Turley

3rd Edition

1853963658, 978-1853963650

More Books

Students also viewed these Accounting questions