Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz help!! Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inveritory balances were as follows:

plz help!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inveritory 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 37,300 machine-hours and incur \$154,795 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $226,000. b. Raw materials were requisitioned for use in production: $203.000 (85\% direct and 15% indirect). c. The following costs were incurred for employee services: d. Heat, power, and water costs were incurred in the factory: $47,850. c. Prepaid insurance expired during the year: $16,500 (80\% relates to factory operations, and 20% relates to selling and administrative activities). f. Advertising costs were incurred, $56,500. 9. Depreciation was recorded for the year: $67,800 (75\% relates to factory operations, and 25% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 42,600 machine-hours for the year. 1. Goods that cost $516,400 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $760.400 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $508,800 Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required a transaction/event, select "No journal entry required" in the first account field.) 1. Raw materials were purchased on account: $226,000. 2. Raw materials were requisitioned for use in production: $203,000 ( 85% direct and 15% indirect). 3 Record the costs that were incurred for employee services. 4eat, power, and water costs were incurred in the factory: $47,850. 5repaid insurance expired during the year: $16,500 ( 80% relates to factory operations, and 20% relates to selling and administrative activities). Note : 0 . journal entry has been entered 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 manufacturing overhead underapplied or overapplied for the year? 3-a. Is manufacturing overhead underapplied or overapplied for the year? Overapplied overhead Underapplied overhead 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Study On The Auditing System Of Socialism With Chinese Characteristics

Authors: Jiayi Liu

1st Edition

111932470X, 978-1119324706

More Books

Students also viewed these Accounting questions

Question

Have I incorporated my research into my outline effectively?

Answered: 1 week ago