Please complete attached spreadsheet questions A-E. Thanks!
ACCOUNTING 321 ONLINE PROJECT CHAPTER 3 Cedar Hills Company produces reproductions of antique furniture at a plant located in rural North Dakota. Because there are hundreds of potential products, some of which are made only to order, the company uses a job-order costing system. On January 1, the start of the company's fiscal year, inventory account balances were as follows: Raw Materials Work in Process Finished Goods 31,800 29,000 18,600 The company applies overhead costs to jobs on the basis of machine-hours. 38,500 hours estimated total machine-hours of plant operation this year estimated total manufacturing overhead costs to be incurred this year 196,350 AMOUNT Transactions occurring during the year: 156,800 a. Raw materials purchased on account Raw materials requisitioned for use in production 169,400 b. portion of total chargeable directly to jobs 106,800 c. Costs for employee services were incurred as follows: 128,900 Direct 49,000 Indirect 76,750 Sales Commissions 49,240 Administrative Salaries 17,420 d. Prepaid insurance expired during the year portion related to factory operations 10,670 (remainder was related to selling & administrative activities) 26,500 e. Utility costs incurred in the factory, all paid in cash. 19,500 f. Advertising costs incurred on account 48,800 g. Depreciation recorded on equipment portion for equipment used in the factory 43,600 (remaining amount was for equipment used in selling & administative activities) h. Manufacturing overhead was applied to production. Machine hours of operating time during the year 39,600 hours i. Manufactured goods were transferred into the finished goods warehouse. Costs for transferred goods according to job cost sheets 442,660 Sales (all on account) to customers during the year 695,000 j. Cost of Goods Sold 433,260 REQUIRED: A. Prepare journal entries to record the transactions listed above. B. Use the supplied T-Accounts for the inventories, Manufacturing Overhead, and Cost of Goods Sold to post the relevant data from your journal entries to the T-Accounts. (Don't forget to enter the beginning balances in your inventory accounts.) Compute an ending balance in each account. C. Is Manufacturing Overhead underapplied or overapplied for the year? Explain. D. Prepare a journal entry to cost any balance in the Manufacturing Overhead account to Cost of Goods Sold. E. Prepare an income statement for the year. It is not necessary to prepare a schedule of cost of goods manufactured. All information for the income statement is available in the journal entries and T-Accounts. ACCOUNTING 321 ONLINE PROJECT CHAPTER 3 REQUIREMENT A: ITEM DESCRIPTION DEBIT CREDIT ACCOUNTING 321 ONLINE PROJECT CHAPTER 3 REQUIREMENT B RAW MATERIALS REQUIREMENT C REQUIREMENT D: WORK IN PROCESS ACCOUNTING 321 ONLINE PROJECT CHAPTER 3 REQUIREMENT E
