Question 2:

Question 5:

flelds. The company uses a Job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year: a. Raw materlals purchased on account, $290,000. b Raw materials used In production (all direct materials), $275,000. c Utility bills incurred on account, $77000 90% related to factory operations and the remainder related to seling and administrative activities). d. Accrued salary and wage costs: Direct labor (970 houre) Indirect Labor selling and administrative salarles 320,000 $ 108,000 s 200,000 e Maintenance costs Incurred on account In the factory, $72,000 f. Advertising costs Incurred on account, $154,000 g Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and adminlstrative equipment). h Rental cost incurred on account, $115,000 (80% related to factory facilities, and the remainder related to sel ng and administrative facilities) L Manufacturing overhead cost was applied to jobs, S 7 J Cost of goods manufactured for the year, $950,000. k. Sales for the year (all on account) totaled $2100,000. These goods cost $980.000 according to their job cost sheets. The balances in the Inventory accounts at the beginning of the year were: S 4B,000 39,000 $ 78,000 RaW Naterlals work In PEOGRS Finiahed Goode Required: 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to T-accounts. (Don't forget to enter the beginning Inventory balances above.) 3. Prepare a schedule of cost of goods manufactured 4A Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold 4B. Prepare a schedule of cost of goods sold S Prepare an income statement for the year