Answered step by step
Verified Expert Solution
Question
1 Approved Answer
last Northern Manufacturing uses a traditional job order cost system and keeps track of inventories with a perpetual system. The company applies overhead to jobs
last
Northern Manufacturing uses a traditional job order cost system and keeps track of inventories with a perpetual system. The company applies overhead to jobs using direct labor hours as a basis. The predetermined overhead rate is $100 per direct labor hour this year. Use the following account titles to prepare journal entries in proper form for selected events 1-9 that occurred during 2023. 1. Raw materials are purchased on account for $1,600,000. 2. Raw materials are requisitioned for use in production, $850,000 for direct materials and $150,000 for indirect materials. 3. Total factory labor costs of $1,000,000 are incurred, but not yet paid. Direct labor is $800,000 and indirect factory labor is $200,000. 4. The company pays in cash $15,000 for advertising. 5. Factory utility costs of $25,000 are incurred, but not yet paid for factory operations. 6. Manufacturing overhead costs are applied to production. A total of 20,000 direct labor hours are worked. 7. Goods costing $1,800,000 to manufacture are completed. 8. Goods are sold on account to customers at a total selling price of $4,000,000. The goods cost $2,000,000 to manufacture. 9. The company closes any underapplied or overapplied overhead to cost of goods sold at the end of the year. If the Manufacturing overhead account had a year-end debit balance of $3,000, make the journal entry to close the manufacturing overhead account Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started