Mariya Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $221,200 of manufacturing overhead for an estimated allocation base of $158,000 direct material dollars. The following transactions took place during the year (all purchases and services were acquired on account) a. Raw materials purchased, $145,000 b. Raw materials requisitioned for use in production (all direct materials), $141,000. c. Utility bills incurred in the factory, $24,000. d. Costs for salaries and wages were incurred as follows: Direct labor Indirect labor Selling and administrative salaries $ 223,000 $ 61,700 $ 143,000 e. Maintenance costs incurred in the factory, $17,000 f. Advertising costs incurred, $128,000. g. Depreciation recorded for the year, $43,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $85,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration) Miscellaneous selling and administrative costs incurred, $11,000. j. Manufacturing overhead cost was applied to jobs, $_2 Cost of goods manufactured for the year, $555,000 1. Sales for the year (all on account) totaled $1,100,000. These goods cost $530,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were as follows: Raw materials Work in process Finished Goods $ 23,000 $ 24,000 $ 34,000 Required: Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal Credit No 1 Transaction a. Debit 145,000 Raw materials Accounts payable 145,000 141,000 Work in process Raw materials 141.000 24,000 Manufacturing overhead Accounts receivable 24,000 4 d Work in process Manufacturing overhead Administrative expenses Accounts receivable 223,000 61,700 143,000 427,000 17,000 Manufacturing overhead Accounts receivable 17,000 128,000 Advertising expense Accounts receivable 128,000 Manufacturing overhead Accumulated depreciation Accumulated depreciation 30,100 12.900 43,000 Manufacturing overhead Rent expense Accounts receivable 68,000 17,000 85,000 2. Post your entries to T-accounts. (Don't forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. Beg. Bal. Accounts Receivable 1,100,000 427,000 Beg. Bal. Raw Materials 23,000 145,000 141,000 End. Bal. 1,527,000 End. Bal. 27,000 Beg. Bal. Beg. Bal. Work in Process 24,000 141,000 555,000 K. 223,000 197,400 Finished Goods 34,000 555,000 530,000 K. End. Bal. 30,400 End. Bal. 59,000 Manufacturing Overhead Accounts Payable Beg. Bal. Beg. Bal. 197,400; 145,000 a. 24,000 61,700 17,000 30,100 68,000 End. Bal. 3,400 End. Bal. 145,000 Accumulatea Depreciation Depreciation Expense Beg. Bal. Beg. Bal. 43,0009 12,900 End. Bal. 43,000 End. Bal. 12,900 Salaries and Wages Payable Salaries Expense Beg. Bal. Beg. Bal. 143,000 End, Bal End. Bal. 143,000 Miscellaneous Expense Advertising Expense Beg. Bal. Beg. Bal. 11,000 128,000 End. Bal. 11,000 End. Bal. 128,000 Rent Expense Cost of Goods Sold Beg. Bal. Beg. Bal. 17,000 530,000 End. Bal. 17,000 End. Bal. 530,000 Sales Beg. Bal. 1,100,000 End. Bal. 1,100,000 3. Prepare a schedule of cost of goods manufactured. Mariya Company Schedule of Cost of Goods Manufactured Direct Materials: Raw materials inventory, ending $ Add: Direct labor Total raw materials available Add: Manufacturing overhead applied to work in process Materials used in production 141,000 223,000 364,000 197,400 $ 166,600 Total manufacturing cost Add: Beginning work in process inventory 16 166,600 24,000 190,600 (305,400) (114,800) Less: Ending work in process inventory Cost of goods manufactured $ Mariya Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $221,200 of manufacturing overhead for an estimated allocation base of $158,000 direct material dollars. The following transactions took place during the year (all purchases and services were acquired on account) a. Raw materials purchased, $145,000 b. Raw materials requisitioned for use in production (all direct materials), $141,000. c. Utility bills incurred in the factory, $24,000. d. Costs for salaries and wages were incurred as follows: Direct labor Indirect labor Selling and administrative salaries $ 223,000 $ 61,700 $ 143,000 e. Maintenance costs incurred in the factory, $17,000 f. Advertising costs incurred, $128,000. g. Depreciation recorded for the year, $43,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $85,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration) Miscellaneous selling and administrative costs incurred, $11,000. j. Manufacturing overhead cost was applied to jobs, $_2 Cost of goods manufactured for the year, $555,000 1. Sales for the year (all on account) totaled $1,100,000. These goods cost $530,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were as follows: Raw materials Work in process Finished Goods $ 23,000 $ 24,000 $ 34,000 Required: Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal Credit No 1 Transaction a. Debit 145,000 Raw materials Accounts payable 145,000 141,000 Work in process Raw materials 141.000 24,000 Manufacturing overhead Accounts receivable 24,000 4 d Work in process Manufacturing overhead Administrative expenses Accounts receivable 223,000 61,700 143,000 427,000 17,000 Manufacturing overhead Accounts receivable 17,000 128,000 Advertising expense Accounts receivable 128,000 Manufacturing overhead Accumulated depreciation Accumulated depreciation 30,100 12.900 43,000 Manufacturing overhead Rent expense Accounts receivable 68,000 17,000 85,000 2. Post your entries to T-accounts. (Don't forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. Beg. Bal. Accounts Receivable 1,100,000 427,000 Beg. Bal. Raw Materials 23,000 145,000 141,000 End. Bal. 1,527,000 End. Bal. 27,000 Beg. Bal. Beg. Bal. Work in Process 24,000 141,000 555,000 K. 223,000 197,400 Finished Goods 34,000 555,000 530,000 K. End. Bal. 30,400 End. Bal. 59,000 Manufacturing Overhead Accounts Payable Beg. Bal. Beg. Bal. 197,400; 145,000 a. 24,000 61,700 17,000 30,100 68,000 End. Bal. 3,400 End. Bal. 145,000 Accumulatea Depreciation Depreciation Expense Beg. Bal. Beg. Bal. 43,0009 12,900 End. Bal. 43,000 End. Bal. 12,900 Salaries and Wages Payable Salaries Expense Beg. Bal. Beg. Bal. 143,000 End, Bal End. Bal. 143,000 Miscellaneous Expense Advertising Expense Beg. Bal. Beg. Bal. 11,000 128,000 End. Bal. 11,000 End. Bal. 128,000 Rent Expense Cost of Goods Sold Beg. Bal. Beg. Bal. 17,000 530,000 End. Bal. 17,000 End. Bal. 530,000 Sales Beg. Bal. 1,100,000 End. Bal. 1,100,000 3. Prepare a schedule of cost of goods manufactured. Mariya Company Schedule of Cost of Goods Manufactured Direct Materials: Raw materials inventory, ending $ Add: Direct labor Total raw materials available Add: Manufacturing overhead applied to work in process Materials used in production 141,000 223,000 364,000 197,400 $ 166,600 Total manufacturing cost Add: Beginning work in process inventory 16 166,600 24,000 190,600 (305,400) (114,800) Less: Ending work in process inventory Cost of goods manufactured $