Nelson Company, which uses a job-order costing system, had the following account balances on January 1 of the current year: The Work-in-Process Inventory consisted of three jobs: #1211 $5,120; #1212 $8,470; and #1213 $8,860. The Finished Goods Inventory consisted of two jobs, #1207, $31,900 and #1209 $33,800. Nelson Company uses a normal costing system with an overhead rate based on machine hours. The following budgeted information was available for the current year: Annual overhead costs $107,800 and machine hours 2.450. During the current year, the following transactions took place: Raw materials costing $50,000 were purchased on account. Total factory labor charges accrued were $147,400. A summary of material requisitions and time tickets appeared as follows: Other factory costs include $24,500 of depreciation on factory equipment, $9,500 of expired factory insurance, $12,000 of accrued property taxes and $18,300 of miscellaneous factory costs paid in cash. Job Nos. 1211, 1212, 1213, 1214, 1215, and 1218 were completed. Job Nos. 1207, 1209, 1211, 1213, and 1218 were sold for a total of $300,000 cash. What is the pre-determined annual overhead rate? Complete the attached cost flow diagram and job order cost sheets. Be sure to enter the beginning balances of the inventory accounts and be sure to compute ending balances for all accounts. Prepare ALL necessary journal entries for the current year in the attached general journal. Verify the ending balance of the work-in-process and finished goods inventories by reconciling the balances to the appropriate job cost sheets. Prepare the manufacturing statement and a partial income statement (through gross profit) for the year. Nelson Company, which uses a job-order costing system, had the following account balances on January 1 of the current year: The Work-in-Process Inventory consisted of three jobs: #1211 $5,120; #1212 $8,470; and #1213 $8,860. The Finished Goods Inventory consisted of two jobs, #1207, $31,900 and #1209 $33,800. Nelson Company uses a normal costing system with an overhead rate based on machine hours. The following budgeted information was available for the current year: Annual overhead costs $107,800 and machine hours 2.450. During the current year, the following transactions took place: Raw materials costing $50,000 were purchased on account. Total factory labor charges accrued were $147,400. A summary of material requisitions and time tickets appeared as follows: Other factory costs include $24,500 of depreciation on factory equipment, $9,500 of expired factory insurance, $12,000 of accrued property taxes and $18,300 of miscellaneous factory costs paid in cash. Job Nos. 1211, 1212, 1213, 1214, 1215, and 1218 were completed. Job Nos. 1207, 1209, 1211, 1213, and 1218 were sold for a total of $300,000 cash. What is the pre-determined annual overhead rate? Complete the attached cost flow diagram and job order cost sheets. Be sure to enter the beginning balances of the inventory accounts and be sure to compute ending balances for all accounts. Prepare ALL necessary journal entries for the current year in the attached general journal. Verify the ending balance of the work-in-process and finished goods inventories by reconciling the balances to the appropriate job cost sheets. Prepare the manufacturing statement and a partial income statement (through gross profit) for the year
