Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ms excel pls Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as

ms excel pls image text in transcribed
image text in transcribed
image text in transcribed
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36,100 machine-hours and incur $155,230 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $202.000. b. Raw materials were requisitioned for use in production: $191,000 ( 80% direct and 20% indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $42,450. e. Prepaid insurance expired during the year. $10,500 (85\% relates to factory operations, and 15% relates to selling and administrative activities). f. Advertising costs were incurred, $50,500. 9. Depreciation was recorded for the year: $60,600 (90\% relates to factory operations, and 10\% relates to selling and administrative activities). f. Advertising costs were incurred, $50,500. 9. Depreciation was recorded for the year: $60,600 (90\% relates to factory operations, and 10% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,200 machine-hours for the year. 1. Goods that cost $484,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $704,700 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $479,200. 2-a. Is manufacturing overhead underapplied or overapplied for the year? Underapplied overtiead Overapplied overhead 2-b. Prepare a joumal entry to properly dispose of any balance in the Manufacturing Overticad account. (Do not round intermediate calculations and round your final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to propetly dispose of any balance in the Manufacturing Overhead account. Note, Enter idebits befure credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Assurance & Advisory Services

Authors: Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Cris Riddle, Mark Salamasick, Paul J. Sobel

4th Edition

0894139878, 978-0894139871

More Books

Students also viewed these Accounting questions