question attached
Pittman Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Pittman for 2017 are as follows: (Click the icon to view the T-accounts.) i (Click the icon to view the additional information.) i T-accounts i More Info - X Direct Materials Control Work-in-Process Control Finished Goods Control a. Direct manufacturing labour wage rate was $15 per hour. 1-1-2017 38,000 237,000 1-1-2017 46,000 1-1-2017 14,000 884,960 Manufacturing overhead was allocated at $19 per direct manufacturing labour-hour. 139,000 Dir. Manuf. 926,270 c. During the year, sales revenues were $1,050,000, and marketing and labour 357,000 distribution costs were $121,000. Manufacturing Overhead Control Manufacturing Overhead Allocated Cost of Goods Sold 517,000 Print Done Print DoneRequirement 1. What was the amount of direct materials issued to production during 2017? Direct materials issued to production during 2017 was $ Requirement 2. What was the amount of manufacturing overhead allocated to jobs during 2017? First identify the formula to calculate the manufacturing overhead allocated. X = Manufacturing overhead allocated Manufacturing overhead allocated to jobs during 2017 was $ Requirement 3. What was the total cost of jobs completed during 2017? The total cost of jobs completed during 2017 was $Requirement 4. What was the balance of work-in-process inventory on December 31, 2017? Post the entries during the year in the Work-in-process control account to determine the ending balance on December 31, 2017. Be sure to select reference labels for each of the entries. Work-in-Process Control Requirement 5. What was the cost of goods sold before proration of under- or overallocated overhead? The cost of goods sold before proration of under- or overallocated overhead was $ Requirement 6. What was the under- or overallocated manufacturing overhead in 2017? The under- or overallocated manufacturing overhead in 2017 was $Requirement 7a. Dispose of the under- or overallocated manufacturing overhead using the write-off to Cost of Goods Sold. The Cost of goods sold account balance after the write-off is $ Requirement 7b. Dispose of the under- or overallocated manufacturing overhead using proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold. Enter the account balances before proration, then the adjustment amounts and finally, calculate the account balances after proration. Proration of Account Balance Over- or Underallocated Account Balance Account (Before Proration) Manufacturing Overhead (After Proration) Work-in-Process + Finished Goods Cost of Goods Sold TotalRequirement 8. Using each of the approaches in requirement 7, calculate Pittman's operating income for 2017. First calculate operating income or loss using the write-off to cost of goods sold approach and then using the proration approach. (Use parentheses or a minus sign for an operating loss.) Write-off to Proration based Cost of Goods Sold on ending balances Revenues Cost of Goods Sold Gross Margin Marketing and distribution costs Operating income/(loss) Requirement 9. Which approach in requirement 7 do you recommend Pittman use? Explain your answer briefly. The recommended approach is the This is preferred because of its
