Answered step by step
Verified Expert Solution
Question
1 Approved Answer
one question with 4 parts Ravsten Company uses a job order costing system. On January 1, the beginning of the current year, the company's inventory
one question with 4 parts
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: Raw materials Work in process Finished goods $20,000 $11,600 $38,800 The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36,800 machine-hours and incur $171,120 in manufacturing overhead cost. The following transactions were recorded for the year es a. Raw materials were purchased on account: $216,000. b. Raw materials were requisitioned for use in production: S198,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales comissions Administrative salaries $166,400 $ 28,600 $ 38,400 $ 83,200 d. Heat, power and water costs were incurred in the factory: $45.600. e. Prepaid insurance expired during the year: $14,000 (85% relates to factory operations, and 15% relates to selling and administrative Check in d. Heat, power, and water costs were incurred in the factory: $45,600. e. Prepaid insurance expired during the year. $14,000 (85% relates to factory operations, and 15% relates to selling and administrative activities) f. Advertising costs were incurred, $54,000. g. Depreciation was recorded for the year. $64,800 (90% relates to factory operations, and 10% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 41,600 machine-hours for the year. 1. Goods that cost $515,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse j. Sales for the year totalled $737,200 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $508,800. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermed fte calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 11 8 2 Step by Step Solution
There are 3 Steps involved in it
Step: 1
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