part a & part b

Chapter 15 Flows of Manufacturing Worksheet The following information is available for Hubbard Company, which produces custom ski chalets and uses a job order cost accounting system. December 31 January 31 Inventories Raw Materials 85,000 94,000 Work in Process 52,200 63,300 Finished Goods 105,000 77,600 Activities and information for March Raw Materials purchases (paid in cash) 252,000 Factory payroll (paid in cash) 387,000 Factory overhead Indirect materials 57,000 Indirect labor 122,000 Other overhead costs (paid in cash) 162,000 Sales (received in cash) 1,800,000 Predetermined overhead rate based on direct labor costs 90% Part A: Compute the following amounts for the month of January. Show your work and label so I can find it easily! START ON THE NEXT PAGE! 1. Cost of direct materials used 2. Cost of direct labor used 3. Cost of goods manufactured 4. Cost of goods sold (ignore under or over applied overhead at this stage) 5. Gross profit 6. Overapplied or underapplied overhead Part B: Use the work you have completed above to make journal entries for the following events in January 1. Raw materials purchases 2. Direct materials usage 3. Indirect materials usage 4. Direct labor usage 5. Indirect labor usage 6. Payment of factory payroll 7. Purchase of other factory overhead for cash, excluding indirect materials and indirect labor 8. Application of total factory overhead to Work in Process 9. Allocate overapplied or underapplied overhead to Cost of Goods Sold