PB21 Recording Manufacturing and Nonmanufacturing Costs, Preparing Cost of Goods Manufactured Report and Income Statement LO 23, 24, 25, 26

Coda Industries uses a job order cost system. On November 1, the company had the following balance in the accounts:

The following transactions occurred during November:

1. Purchased materials on account at a cost of $270,500.

2. Requisitioned materials at a cost of $195,500, only $180,000 of which was traceable to specific jobs.

3. Recorded unpaid factory labor of $267,000, 80 percent of which was direct.

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4. Incurred other costs:

   Selling expenses	$ 65,300
   Factory utilities	68,300
   Administrative expenses	92,500
   Factory rent	125,000
   Factory depreciation	64,800

5. Applied overhead during the month totaling $290,000.

6. Completed jobs costing $607,250.

7. Sold jobs costing $557,700.

8. Recorded sales revenue (on account) of $850,000.

Required:

1. Post the November transactions to the T-accounts. (Note: Some transactions will affect other accounts not shown; e.g., Cash, Accounts Payable, Accumulated Depreciation. You do not need to show the offsetting debit or credit to those accounts.)

2. Compute the balance in the accounts at the end of November.

3. Compute over- or underapplied manufacturing overhead. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?

4. Prepare Codas cost of goods manufactured report for November.

5. Prepare Codas November income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead.