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Please help me to solve this Ravsten Company uses a job-order costing system. On January 1 , the beginning of the current yeat, the company's
Please help me to solve this
Ravsten Company uses a job-order costing system. On January 1 , the beginning of the current yeat, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur $156,960 in manufacturing overhead cost. The following fransactions were recorded for the year: a. Raw materials were purchased on account: $205,500. b. Raw materials were requisitioned for use in production: $195.500 (80\% direct and 2036 indirect). c. The following costs were incurred for employee services. d. Heat. power, and water costs were incurred in the factory: $43,100. e. Prepaid insurance expired during the year $11,100 ( 900 s relates to factory operations, and 10% relates to selling and administrative d. Heat, power, and water costs were incurred in the factory: $43,100. e. Prepaid insurance explred during the year $11,100 (90\% relates to factory operations, and 10% relates to selling and adminlstrative activities) f. Advertising costs were incurred, $51,100. 9. Depreciation was recorded for the year. $61,200(85% relates to factory operations, and 15% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year: i. Goods that cost $493,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse: 1. Sales for the year totalled $738,500 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $486,000 Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. 3.a. Is manufactuting overhead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round your percentoges and final answers to 2 decimal places. If no entry is required for a tronsaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 4. Prepare an income statement for the year. (Do not round intermediate colculations and round your final answers to nearest whole dollar omount.) Step by Step Solution
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