Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz help:) PA2-5 (Algo) Recording Manufacturing Costs and Analyzing Manufacturing Overhead [LO 2-3, 2-4, 2-5) Christopher's Custom Cabinet Company uses a job order cost system

plz help:)
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
PA2-5 (Algo) Recording Manufacturing Costs and Analyzing Manufacturing Overhead [LO 2-3, 2-4, 2-5) Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $17,000 6,200 20,800 The following transactions occurred during January (a) Purchased materials on account for $27,300, (b) Issued materials to production totaling $20,300, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. (Payroll costs totaling $17,300 were recorded as follows: $10,700 for assembly workers 2,300 for factory supervision 1,600 for administrative personnel 2,700 for sales commissions (d) Recorded depreciation: $4,100 for factory manines. $1,300 for the copier used in the administrative office. (e) Recorded $1,100 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. Paid $4,900 in other factory costs in cash. (9) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. th) Completed all jobs but one; the job cost sheet for the uncompleted job shows $2,600 for direct materials. $2,100 for direct labor. and $4,200 for applied overhead. Sold jobs costing $51,400. The revenue earned on these jobs was $66,820. Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: a. Raw Materials Inventory. b. Work in Process Inventory. c. Finished Goods Inventory. d. Cost of Goods Sold e. Manufacturing Overhead. f. Selling, General, and Administrative Expenses. 9. Sales Revenue. 2. Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. 3. Determine the amount of over or underapplied overhead. 4. Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Raw Materials Inventory 17,000 Work In Process Inventory 6,200 Beg. Bal. Beg. Bal. End. Bal. 17,000 End. Bal. 6,200 Cost of Goods Sold Finished Goods Inventory 20,800 Beg. Bal. Beg. Bat. 0 End Bal 20,800 End. Bal Manufacturing Overhead Selling, General, and Administrative Expenses Beg. Bal. Beg Bal. 0 End. Bal a. Sales Revenue Beg. Bal. End. Bal. 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. Unadjusted Gross Profit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the amount of over- or underapplied overhead. Manufacturing Overhead Overapplied by Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold. Adjusted Gross Profit (Required a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions