Answered step by step
Verified Expert Solution
Question
1 Approved Answer
my wo ok nt ences Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor
my wo ok nt ences Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of the current year follow: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $ 16,200 5,800 21,000 The following transactions occurred during January: a. Purchased materials on account for $27,300. b. Issued materials to production totaling $20,500, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. c. Payroll costs totaling $17,300 were recorded as follows: $10,800 for assembly workers $2,500 for factory supervision $1,700 for administrative personnel $2,300 for sales commissions d. Recorded depreciation: $5,700 for factory machines, $1,000 for the copier used in the administrative office. e. Recorded $1,600 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. f. Paid $5,700 in other factory costs in cash. g. Applied manufacturing overhead at a rate of 200 percent of plirect labor cost. h. Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,500 for direct materials, $2,300 for direct labor, and $4,600 for applied overhead. i. Sold jobs costing $52,000. The revenue earned on these jobs was $67,600. Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets set up Taccounts for the relevant accounts and record the beginning balances January transactions and compute the final balances TAccounts 1 Raw ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started