Mfg 's predetermined overhead rate is 200 of direct labor Information on the company's production activities during september 2015 follows a Purchased raw materials on credit, $125,000 b Materials requisitions record use of the following materials for the month job 487 30,000 job 488 20,000 job 489 12,000 job 490 14,000 job 491 4,000 total direct materials 80,000 indirect materials 12,000 total materials used 92,000 c paid 11,000 cash for miscellaneus factory overhead costs d time tickets record use of the following labor for the month these wages are paid in cash job 487 8,000 job 488 7,000 job 489 25,000 job 490 26,000 job 491 2,000 total direct labor 68,000 indirect labor 16,000 total 84,000 e allocated overhead to jobs 487, 489, and 490 f transferred jobs 487, 489, and 490 to finished goods g sold jobs 487 and 489 on credit for a total price of 340,000 h the company incurred the following overhead costs during the month ( credit prepaid insurance for expires factory insurance) depreciation of factory building 37,000 depreciation of factory equipment 21,000 expired factory insurance 7,000 accrued property taxes payable 31,000 i applied overhead at month end to the work in process inventory account (jobs 488 and 491) using the predetermined overhead rate of 200 of direct labor cost REQUIRE 1 prepare a job cost sheet for each job worked on in the month Use the following simplified form Job no Materials $ labor overhead total cost $ 2 prepare journal entries to record events and transactions A through i 3 set up T accounts for each of the following general accounts, each of which started the month with zero balance raw materials inventory, work in process inventory, finished goods inventory, factory overhead, cost of goods sold then post the journal entries to these T accounts and determine the balance of each account 4 prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the work in process inventory account balance prepare similar reports for finished goods inventory and cost of goods sold

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 01, 2024

Mfg.'s predetermined overhead rate is 200% of direct labor. Information on the company's production activities during september 2015 follows. a. Purchased raw materials on credit,

Mfg.'s predetermined overhead rate is 200% of direct labor. Information on the company's production activities during september 2015 follows.

a. Purchased raw materials on credit, $125,000.

b. Materials requisitions record use of the following materials for the month.

job 487	30,000
job 488	20,000
job 489	12,000
job 490	14,000
job 491	4,000
total direct materials	80,000
indirect materials	12,000
total materials used	92,000

c. paid 11,000 cash for miscellaneus factory overhead costs.

d. time tickets record use of the following labor for the month. these wages are paid in cash.

job 487	8,000
job 488	7,000
job 489	25,000
job 490	26,000
job 491	2,000
total direct labor	68,000
indirect labor	16,000
total	84,000

e. allocated overhead to jobs 487, 489, and 490.

f. transferred jobs 487, 489, and 490 to finished goods.

g. sold jobs 487 and 489 on credit for a total price of 340,000.

h. the company incurred the following overhead costs during the month ( credit prepaid insurance for expires factory insurance).

depreciation of factory building	37,000
depreciation of factory equipment	21,000
expired factory insurance	7,000
accrued property taxes payable	31,000

i. applied overhead at month-end to the work in process inventory account (jobs 488 and 491) using the predetermined overhead rate of 200% of direct labor cost.

REQUIRE

1. prepare a job cost sheet for each job worked on in the month. Use the following simplified form.

Job no.__________
Materials	$_______
labor
overhead
total cost	$_______

2. prepare journal entries to record events and transactions A through i.

3. set up T-accounts for each of the following general accounts, each of which started the month with zero balance: raw materials inventory, work in process inventory, finished goods inventory, factory overhead, cost of goods sold. then post the journal entries to these T-accounts and determine the balance of each account.

4. prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the work in process inventory account balance. prepare similar reports for finished goods inventory and cost of goods sold.