Problem 1 (60 pts.) Given the information below: 1) Show the entries, sans T-accounts, to record the transactions listed on the next page. The Rocky Ridge Company uses normal job costing and allocates indirect manufacturing costs using machine hours; 2) Cost out Job 101 under normal and actual costing. Please be sure to show your work (e.g., any manufacturing overhead (MOH) rates or allocation) in order to provide the evidence necessary to receive full or partial credit in the case of a conceptual or math error. Index your entries (do not use a T-acct format) by using the appropriate letter for a transaction (e.g., a) as it is listed on the next page under the heading Transactions. $750,000 $225,000 $300,000 $2,590,000 Materials Control BB1/1/20 WIP Control BB 1/1/20 FG Control BB 1/1/20 Materials purchased on account Direct materials issued to WIP Control Indirect materials Direct labor incurred Indirect labor incurred Depreciation on Plant Equipment Utilities in Plant Repairs and maintenance Plant Insurance on Plant $1,350,000 $365,000 $1,500,000 $520,000 $1,100,000 $272,500 $421,000 $200,000 Salaries on plant supervisors CGM CGS Sales revenue Actual MOH Budgeted MOH Budgeted machine hours Actual machine hours Amount of IDMC included in balance: WIP FG CGS $537,000 $4,550,000 $2,625,000 $5,900,000 $3,415,500 $4,480,000 6,400 5,500 $356,250 $1,425,000 $1,781,250 Job 101: DM DL Actual machine hours used Transactions: $25,000 $9,000 60 a) Usage of direct and indirect materials; b) Pay cash for direct and indirect labor; c) Incur actual MOH costs; d) Allocate MOH using normal costing; e) Transfer finished goods from WIP to finished goods inventory; f) Sale of goods; g) Adjustment for under- or over-applied MOH costs using the proration approach based on the total amount of allocated MOH costs included in each account balance of the Work-in Process Control, Finished Goods Control, and Cost of Goods Sold accounts. Problem 1 (60 pts.) Given the information below: 1) Show the entries, sans T-accounts, to record the transactions listed on the next page. The Rocky Ridge Company uses normal job costing and allocates indirect manufacturing costs using machine hours; 2) Cost out Job 101 under normal and actual costing. Please be sure to show your work (e.g., any manufacturing overhead (MOH) rates or allocation) in order to provide the evidence necessary to receive full or partial credit in the case of a conceptual or math error. Index your entries (do not use a T-acct format) by using the appropriate letter for a transaction (e.g., a) as it is listed on the next page under the heading Transactions. $750,000 $225,000 $300,000 $2,590,000 Materials Control BB1/1/20 WIP Control BB 1/1/20 FG Control BB 1/1/20 Materials purchased on account Direct materials issued to WIP Control Indirect materials Direct labor incurred Indirect labor incurred Depreciation on Plant Equipment Utilities in Plant Repairs and maintenance Plant Insurance on Plant $1,350,000 $365,000 $1,500,000 $520,000 $1,100,000 $272,500 $421,000 $200,000 Salaries on plant supervisors CGM CGS Sales revenue Actual MOH Budgeted MOH Budgeted machine hours Actual machine hours Amount of IDMC included in balance: WIP FG CGS $537,000 $4,550,000 $2,625,000 $5,900,000 $3,415,500 $4,480,000 6,400 5,500 $356,250 $1,425,000 $1,781,250 Job 101: DM DL Actual machine hours used Transactions: $25,000 $9,000 60 a) Usage of direct and indirect materials; b) Pay cash for direct and indirect labor; c) Incur actual MOH costs; d) Allocate MOH using normal costing; e) Transfer finished goods from WIP to finished goods inventory; f) Sale of goods; g) Adjustment for under- or over-applied MOH costs using the proration approach based on the total amount of allocated MOH costs included in each account balance of the Work-in Process Control, Finished Goods Control, and Cost of Goods Sold accounts
