Mathews Guitar Company makes high quality customized guitars Mathews uses a job order costing system Because the guitars are handmade, the company applies overhead based on direct labor hours At the beginning of the year, the company estimated that total manufacturing overhead costs would be $34,000 and that 6,800 direct labor hours would be worked At year end, Dave, the companys founder and CEO, gives you the following information regarding Mathewss operations 1 The beginning balances in the inventory accounts were Raw Materials Inventory $5,800 Work in Process Inventory $35,100 Finished Goods Inventory $49,400 2 During the year, the company purchased raw materials costing $85,000 All purchases were on account 3 The production department requisitioned $70,000 of raw materials for use in production Of those, 70 were direct materials and 30 were indirect materials 4 The company used 20,900 direct labor hours at a cost of $12 per hour during the year (credit Wages Payable) 5 The company used 4,600 indirect labor hours at a cost of $9 per hour (credit Wages Payable) 6 The company paid $45,600 for insurance, utilities, and property taxes on the factory All payments were cash payments 7 The company recorded factory depreciation of $17,400 8 The company applied manufacturing overhead to inventory based on the 20,900 labor hours actually worked during the year 9 Products costing $401,000 were completed during the year and transferred to the Finished Goods Inventory 10 During the year, the company sold products costing a total of $406,000 11 The company closes under and overapplied overhead to Cost of Goods Sold Prepare journal entries for each of the transactions just listed (Credit account titles are automatically indented when the amount is entered Do not indent manually Post entries in order presented in the problem If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) No Account Titles and Debit Credit 2 (To record raw materials purchases) 3 (To record use of direct and indirect materials in production) 4 (To record direct labor payroll) 5 (To record indirect labor payroll)

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Mathews Guitar Company makes high-quality customized guitars. Mathews uses a job order costing system. Because the guitars are handmade, the company applies overhead based on

Mathews Guitar Company makes high-quality customized guitars. Mathews uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the beginning of the year, the company estimated that total manufacturing overhead costs would be $34,000 and that 6,800 direct labor hours would be worked. At year-end, Dave, the companys founder and CEO, gives you the following information regarding Mathewss operations:

The beginning balances in the inventory accounts were:

	Raw Materials Inventory		$5,800
	Work in Process Inventory		$35,100
	Finished Goods Inventory		$49,400

During the year, the company purchased raw materials costing $85,000. All purchases were on account.

The production department requisitioned $70,000 of raw materials for use in production. Of those, 70% were direct materials and 30% were indirect materials.

The company used 20,900 direct labor hours at a cost of $12 per hour during the year (credit Wages Payable).

The company used 4,600 indirect labor hours at a cost of $9 per hour (credit Wages Payable).

The company paid $45,600 for insurance, utilities, and property taxes on the factory. All payments were cash payments.

The company recorded factory depreciation of $17,400.

The company applied manufacturing overhead to inventory based on the 20,900 labor hours actually worked during the year.

Products costing $401,000 were completed during the year and transferred to the Finished Goods Inventory.

10.

During the year, the company sold products costing a total of $406,000.

11.

The company closes under- and overapplied overhead to Cost of Goods Sold. image text in transcribed

Prepare journal entries for each of the transactions just listed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Post entries in order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Debit Credit 2. (To record raw materials purchases) 3. (To record use of direct and indirect materials in production) 4. (To record direct labor payroll) 5 (To record indirect labor payroll)