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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
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 223,000 Indirect labor 61,700 Selling and administrative salaries 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) i. Miscellaneous selling and administrative costs incurred, $11,000 j. Manufacturing overhead cost was applied to jobs, k. Cost of goods manufactured for the year, $555,000. 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 23,000 Work in process 24,000 34,000 Finished Goods Required: 1 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 general journal Journal Entry Worksheet 1 2 3 4 5 6 7 8 9 10 11 12 13 Raw materials purchased, $145,000. credit Transaction General Journal Debit *Enter debits before credits done record entry clear ent
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