Question 3, Exercise 4-26 (alt1) Part 1 of 21 HW Score: 50.04%, 3 of 6 points...

Transcribed Image Text:

Question 3, Exercise 4-26 (alt1) Part 1 of 21 HW Score: 50.04%, 3 of 6 points O Points: 0 of 1 Production Company produces gadgets for the coveted small appliance market. The following data reflect activity for the most recent year (Click the icon to view the data) Save Production Company uses a normal job-costing system and allocates overhead to work-in-process at a rate of $2.90 per direct manufacturing labour dollar. Indirect materials are insignificant, so there is no inventory account for indirect materials Required Requirement 1. Prepare journal entries to record the transactions for the year, including an entry to close out over- or underallocated overhead to cost of goods sold. For each joumal entry, indicate the source document that would be used to authorize each entry Also, note which subsidiary ledger, if any, should be referenced as backup for the entry Record the purchase of direct materials. (Record debits first, then credits. Explanations are not required.) (1.) Direct Materials Control Accounts Payable Control Work-in-Process Control Direct Materials Control Journal Entry Accounts Debit Credit on no Data Question 3, Exercise 4-26 (alt1) Part 1 of 21 > Costs incurred Purchases of direct materials (net) on account $ 129,000 Direct manufacturing labour cost 83,000 Indirect labour 54,400 Depreciation, factory equipment 35,000 Depreciation, office equipment 7,800 Maintenance, factory equipment 21,000 Miscellaneous factory overhead 9,000 Rent, factory building 77,000 Advertising expense 94,000 Sales commissions 31,000 Beginning and ending inventories for the year were as follows: Direct materials Work-in-process Finished goods HW - X January 1 December 31 9,100 $ 15,000 6,200 24,000 67,000 32,000 Print Done rement 1. Prepa urce document th the purchase of Direct Ma Accounts Work-in-P Direct Ma Required 1. Prepare journal entries to record the transactions for the year, including an entry to close out over- or underallocated overhead to cost of goods sold. For each journal entry, indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated accounts. - X cated overhead to co das backup for the e Print Done Question 3, Exercise 4-26 (alt1) Part 1 of 21 HW Score: 50.04%, 3 of 6 points O Points: 0 of 1 Production Company produces gadgets for the coveted small appliance market. The following data reflect activity for the most recent year (Click the icon to view the data) Save Production Company uses a normal job-costing system and allocates overhead to work-in-process at a rate of $2.90 per direct manufacturing labour dollar. Indirect materials are insignificant, so there is no inventory account for indirect materials Required Requirement 1. Prepare journal entries to record the transactions for the year, including an entry to close out over- or underallocated overhead to cost of goods sold. For each joumal entry, indicate the source document that would be used to authorize each entry Also, note which subsidiary ledger, if any, should be referenced as backup for the entry Record the purchase of direct materials. (Record debits first, then credits. Explanations are not required.) (1.) Direct Materials Control Accounts Payable Control Work-in-Process Control Direct Materials Control Journal Entry Accounts Debit Credit on no Data Question 3, Exercise 4-26 (alt1) Part 1 of 21 > Costs incurred Purchases of direct materials (net) on account $ 129,000 Direct manufacturing labour cost 83,000 Indirect labour 54,400 Depreciation, factory equipment 35,000 Depreciation, office equipment 7,800 Maintenance, factory equipment 21,000 Miscellaneous factory overhead 9,000 Rent, factory building 77,000 Advertising expense 94,000 Sales commissions 31,000 Beginning and ending inventories for the year were as follows: Direct materials Work-in-process Finished goods HW - X January 1 December 31 9,100 $ 15,000 6,200 24,000 67,000 32,000 Print Done rement 1. Prepa urce document th the purchase of Direct Ma Accounts Work-in-P Direct Ma Required 1. Prepare journal entries to record the transactions for the year, including an entry to close out over- or underallocated overhead to cost of goods sold. For each journal entry, indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated accounts. - X cated overhead to co das backup for the e Print Done