Problem 2-25B Journal Entries; T-Accounts; Financial Statements [LO2-1, LO2-2, LO2-3, LO2-4, LO2-5, LO2-6, LO2-7]

Mariya Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $221,200 of manufacturing overhead for an estimated allocation base of $158,000 direct material dollars.

The following transactions took place during the year (all purchases and services were acquired on account):

a.	Raw materials purchased, $145,000.
b.	Raw materials requisitioned for use in production (all direct materials), $141,000.
c.	Utility bills incurred in the factory, $24,000.
d.	Costs for salaries and wages were incurred as follows:

Direct labor	$	223,000
Indirect labor	$	61,700
Selling and administrative salaries	$	143,000

e.	Maintenance costs incurred in the factory, $17,000.
f.	Advertising costs incurred, $128,000.
g.	Depreciation recorded for the year, $43,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets).
h.	Rental cost incurred on buildings, $85,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration).
i.	Miscellaneous selling and administrative costs incurred, $11,000.
j.	Manufacturing overhead cost was applied to jobs, $ ? .
k.	Cost of goods manufactured for the year, $555,000.
l.	Sales for the year (all on account) totaled $1,100,000. These goods cost $530,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were as follows:

Raw materials	$	23,000
Work in process	$	24,000
Finished Goods	$	34,000

Required:

1.	Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

I need #4 AND #6 I'm not sure my answer is right.

View transaction list Journal entry worksheet 1 2 3 5 6 7 8 8 13 > Raw materials purchased, $145,000. Note: Enter debits before credits. Transaction Debit Credit a. General Journal Raw materials Accounts payable 145,000 145,000 Record entry Clear entry View general journal 2. Post your entries to T-accounts. (Don't forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. Beg. Bal. Accounts Receivable 0 1,100,000 Beg. Bal. Raw Materials 23,000 145,000 141,000 b. a. End. Bal. 1,100,000 End. Bal. 27,000 Beg. Bal. Beg. Bal. b. d. Work in Process 24,000 141,000 555,000 k. 223,000 197,400 Finished Goods 34,000 555,000 530,000 k. End. Bal. 30,400 End. Bal. 59,000 Accounts Payable Beg. Bal. Beg. Bal. C. a. d. Manufacturing Overhead 01 24,000 197,400 61,700 17,000 30,100 68,000 C. e e. 145,000 24,000 17,000 128,000 85,000 11,000 9 f. h. End. Bal. 3,400 End. Bal. 410,000 Accumulated Depreciation Depreciation Expense Beg. Bal. Beg. Bal. 9. 43,000 g 12,900 End. Bal. 43,000 End. Bal. 12,900 Salaries and Wages Payable Salaries Expense Beg. Bal. Beg. Bal. d. 427,700 d. 143,000 End. Bal. 427,700 End. Bal. 143,000 Advertising Expense Beg. Bal. Miscellaneous Expense 0 11,000 Beg. Bal. 128,000 End. Bal. 11,000 End. Bal. 128,000 Cost of Goods Sold Rent Expense 0 17,000 Beg. Bal. h. Beg. Bal. 530,000 End. Bal. 17,000 End. Bal 530,000 Sales Beg. Bal. 0 1,100,000 1. End. Bal. 1,100,000 3. Prepare a schedule of cost of goods manufactured. Mariya Company Schedule of Cost of Goods Manufactured Direct Materials: Beginning work in process inventory $ Add: Purchase of raw materials Total raw materials available Add: Raw materials inventory, ending Materials used in production Direct labor Manufacturing overhead applied to work in process Total manufacturing cost Add: Beginning work in process inventory 23,000 145,000 168,000 27,000 $ 141,000 223,000 197,400 561,400 24,000 585,400 30,400 555,000 Less: Ending work in process inventory Cost of goods manufactured $ 4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal $ Mariya Company Schedule of Cost of Goods Sold Schedule of Cost of Goods Sold: Cost of goods manufactured Add: Finished goods inventory, beginning Cost of goods available for sale Less: Finished goods inventory, ending Cost of goods available for sale Add: Manufacturing overhead applied to work in process Adjusted cost of goods sold 555,000 34,000 589,000 59,000 530,000 3,400 533,400 $ 5. Prepare an income statement for the year. $ 1,100,000 533,400 566,600 Mariya Company Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Depreciation expense Salaries expense Advertising expense Miscellaneous expense Rent expense 12,900 143,000 128,000 11,000 17,000 311,900 254,700 Net operating income $ 6. Job 521 was one of the many jobs started and completed during the year. The job required $3,900 in direct materials and 400 hours of direct labor time at a rate of $14 per hour. If the job contained 540 units and the company billed at 65% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? (Round your answer to 2 decimal places.) Price charged for Job 521 per unit