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*Please show calculations either using t-account or excel a. Cost of indirect materials requisitioned into production: b. The amount of overhead applied to production: c.
*Please show calculations either using t-account or excel
a. Cost of indirect materials requisitioned into production:
b. The amount of overhead applied to production:
c. Total manufacturing costs incurred in production:
d. The amount of under- or over-applied overhead:
e. Was overhead under- or over-applied? (Write "under" or "over"):
f. The ending balance in Raw Materials:
g. The ending balance in Work in Process:
h. The ending balance in Finished Goods:
i. Gross profit for the year (after disposition of overhead):
Sovereign Millworks Company produces reproductions of antique residential moldings at a plant located in Malden, Mass. Since the company makes hundreds of products, some of which are made to order, it uses a job order costing system. On January 1st, the start of the company's fiscal year, inventory account balances were as follows: Raw Materials Work in Process 4,150 6,530 2.990 Finished Goods The company applies overhead to jobs on the basis of direct labor cost. For the fiscal year starting January 1st, it was estimated that direct labor cost would be $12,000 and overhead costs would total $11,400. During the year, the following transactions were completed: 1. Raw materials purchased on account, $10.590. 2. Raw materials requisitioned for use in production, $9,820. Materials costing $8,640 were charged to directly to jobs; the remaining requisitions were for indirect materials usage. 3. Direct and indirect labor costs were $12,200 and $3,900, respectively. 4. Other overhead costs incurred, including factory rent, factory utilities and depreciation of factory equipment, totaled $6,400 for the year. 5. Overhead was applied to production. 6. Goods that had cost $31,860 according to their job cost sheets were completed during the year. 7. Sales revenue totaled $64,370 for the year and the cost of goods sold to customers totaled $31,490. 8. Disposed of the balance in Factory Overhead by closing it to Cost of Goods SoldStep by Step Solution
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