{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T04:45:18-04:00", "answer_date": "2024-06-28 04:45:18", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4242134", "url": "\/study-help\/questions\/oil-field-equipment-company-is-a-small-company-that-manufactures-4242134", "question_creation_date_js": "2024-06-28T04:45:18-04:00", "question_creation_date": "Jun 28, 2024 04:45 AM", "meta_title": "[Solved] Oil field Equipment company is a small co | SolutionInn", "meta_description": "Answer of - Oil field Equipment company is a small company that manufactures specialty heavy equipment for use in Alberta oil-fiel | SolutionInn", "meta_keywords": "oil,field,equipment,company,small,manufactures,specialty,heavy,alberta,oil-fields,job-order,costing", "question_title_h1": "Oil field Equipment company is a small company that manufactures specialty heavy equipment for use in Alberta oil-fields. The company uses a job-order costing system", "question_title": "Oil field Equipment company is a small company that manufactures specialty heavy", "question_title_for_js_snippet": "Oil field Equipment company is a small company that manufactures specialty heavy equipment for use in Alberta oil fields The company uses a job order costing system and applies manufacturing overhead cost to jobs on the basis of the direct labour hours At the beginning of the current year, the following estimates were made to compute the predetermined overhead rate manufacturing overhead cost, 360,000, and 900 direct labour hours The following transactions took place during the year (all purchases purchases and services were acquired on account) a Raw materials were purchased for use in production $200,000 b Raw materials were requisitioned for use in production (all direct materials) $185,000 c Utility bills were incurred in the factory $70,000 (90 related to factory operations and the remaining to administrative activities) d Costs for salaries and wages were incurred as follows Direct labour (975 hours) $230,000 Indirect labour $90,000 selling and administrative salaries $110,000 e Maintenance costs were incurred in the factory $54,000 f Advertising costs were incurred $136,000 g Depreciation was recorded for the year $95,000 (80 relates to factory operations and the remainder relates to selling and admin equipment) I Manufacturing overhead cost was applied to jobs $ j cost of goods manufactured for the year was $770,000 k sales for the year (all on account) totalled $1,200,000 These goods cost $800,000 according to their job cost sheets The balance in the inventory accounts at the beginning of the year were as follows Raw materials $30,000 Work in process $21,000 Finished goods $60,000 Required Prepare journal entries to record above data Post your entries to T accounts (Don't forget to enter opening inventory balance above ) Determine the ending balances in the inventory accounts and in the manufacturing overhead account Do a schedule of cost of goods manufactured Do a journal entry to properly dispose of any balance in the Manufacturing overhead account Do a schedule of costs of goods sold ", "question_description": "

Oil field Equipment company is a small company that manufactures specialty heavy equipment for use in Alberta oil-fields. The company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the direct labour-hours. At the beginning of the current year, the following estimates were made to compute the predetermined overhead rate: manufacturing overhead cost, 360,000, and 900 direct labour-hours. The following transactions took place during the year (all purchases purchases and services were acquired on account): <\/p>

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a. Raw materials were purchased for use in production: $200,000<\/p>

b. Raw materials were requisitioned for use in production (all direct materials): $185,000<\/p>

c. Utility bills were incurred in the factory: $70,000 (90% related to factory operations and the remaining to administrative activities).<\/p>

d. Costs for salaries and wages were incurred as follows: <\/p>