PROBLEM ONE

Donnell Transport assembles prestige mobile homes. Manufacturing overhead is allocated at a rate of $3 per machine hours. The following information is available:

Raw materials 1/1/13 $ 12 Materials & supplies purchased $150

Work in process 1/1/13 2 Direct labor 90

Finished goods 1/1/13 6 Presidents salary 36

Direct materials used 145 Supplies used 10

Depreciation on plant 19 Indirect factory labor used 30

Utilities on the factory 9 Utilities on showroom floor 29

Sales $400 Finished goods 12/31/13 8

Raw materials 12/31/13 ??? Work in process 12/31/13 17

Salesperson salary 25 Property taxes, administration bldg 4

Manufacturing overhead allocated, 21 actual machine hours ??

REQUIRED:

Prepare the journal entries for the above information (15 journal entries).

Show the journal entry to close the over-or-under applied overhead to cost of goods control.

Prepare a cost of goods manufactured statement in good form.

Prepare a cost of goods sold statement in good form.

Prepare an income statement in good form.