QUESTION 1:

Problem No 1: (Builtrite Furniture Company)

Builtrite Furniture Company utilizes a job order cost system. The May cost and

operating data were as follows:

Raw material purchased	$229,700
Direct labor cost	236,800
Raw material issued for production	212,800
Actual manufacturing overhead incurred	219,200 (included is depreciation $ 17,600)
Costs of good manufactured	609,600
Machine hours	43,200
Sales on account	672,000

The company applies manufacturing overhead to production at a rate of $5 per machine hour. The beginning raw material was $25,600; the beginning work in process was $ 43,200. The beginning and ending finished goods inventories were $64,000 and $83,200,

respectively.

Required:

A. Prepare journal entries to record the May transactions.

B. Was manufacturing overhead over applied or under applied for the month of May? ($3

C. Calculate the ending balances of raw materials and work in process.

(RM $42,500, WIP ($ 9,920)