Questions 3 and 4 please
Atlantic Company manufactures kitchen cabinets. It uses a job costing system that allocates factory overhead on the basis of direct labor-costs. Budgeted factory overhead for the year 2018 was $792,000, and management budgeted $360,000 in direct labor costs. The company's tax rate is 21% (Round income tax to the nearest dollar). The trial balance of Atlantic Company on November 30 is as follows: S25,500 64,500 120,000 Accounts Receivable... Materials... Prepaid Factory Insurance.. Machinery and Equipment Accumulated Depreciation. 18,100 $72,000 94,500 195,000 47 500 $509.000 The following transactions are for December 2018 Dec 1 1. Purchased raw materials at a cost of $45,000 and general factory supplies at a cost of $3,100 on account. (Record materials and supplies in the materials account) 2. Received a S60,000 loan from Brooklyn City Bank to be repaid in 3 years. 3. Issued raw materials to be used in production, $47,000. 5. Paid factory utility bill, S9,930 in cash. 15. Received a bill for December's factory rent, S5,400. This amount has not yet been paid. 20. Paid factory janitorial services, $6,000 22. Paid other factory overhead costs, $13,500. 23. Used general factory supplies $1,900. (Indirect manufacturing cost) 23. Incurred selling and administrative expenses on account, $13,250 24. Declared a $1,500 cash dividend. 25. Incurred payroll costs of $48,000 (not yet paid). Of this amount, $29,000 are direct labor costs and the remaining $19,000 indirect labor costs 27. Incurred research and development costs totaling 11,000 on account 28. Paid cash dividend, S1,500 28. Paid payroll costs, $48,000 30. Record depreciation of factory machinery and equipment, $2,800. 30. Paid S10,500 restructuring costs. 30. Allocate factory overhead costs to production on the basis of direct labor costs 31. Cost of goods manufactured and transferred to the finished goods storeroom, S91,000. 31. Sold goods costing $188,000 for $363,000. (Assume all sales were made on account). 31. Paid accounts payable totaling, $157,000. 31. Prepaid factory insurance expired, $1,475. 31. Collected accounts receivable in the amount of S315,000 31. Record S1,000 depreciation on office equipment. 31. Accrued S500 interest expense. 31. Calculate the overallocated or underallocated overhead and close this amount to the Cost of Goods Sold account. Atlantic Company manufactures kitchen cabinets. It uses a job costing system that allocates factory overhead on the basis of direct labor-costs. Budgeted factory overhead for the year 2018 was $792,000, and management budgeted $360,000 in direct labor costs. The company's tax rate is 21% (Round income tax to the nearest dollar). The trial balance of Atlantic Company on November 30 is as follows: S25,500 64,500 120,000 Accounts Receivable... Materials... Prepaid Factory Insurance.. Machinery and Equipment Accumulated Depreciation. 18,100 $72,000 94,500 195,000 47 500 $509.000 The following transactions are for December 2018 Dec 1 1. Purchased raw materials at a cost of $45,000 and general factory supplies at a cost of $3,100 on account. (Record materials and supplies in the materials account) 2. Received a S60,000 loan from Brooklyn City Bank to be repaid in 3 years. 3. Issued raw materials to be used in production, $47,000. 5. Paid factory utility bill, S9,930 in cash. 15. Received a bill for December's factory rent, S5,400. This amount has not yet been paid. 20. Paid factory janitorial services, $6,000 22. Paid other factory overhead costs, $13,500. 23. Used general factory supplies $1,900. (Indirect manufacturing cost) 23. Incurred selling and administrative expenses on account, $13,250 24. Declared a $1,500 cash dividend. 25. Incurred payroll costs of $48,000 (not yet paid). Of this amount, $29,000 are direct labor costs and the remaining $19,000 indirect labor costs 27. Incurred research and development costs totaling 11,000 on account 28. Paid cash dividend, S1,500 28. Paid payroll costs, $48,000 30. Record depreciation of factory machinery and equipment, $2,800. 30. Paid S10,500 restructuring costs. 30. Allocate factory overhead costs to production on the basis of direct labor costs 31. Cost of goods manufactured and transferred to the finished goods storeroom, S91,000. 31. Sold goods costing $188,000 for $363,000. (Assume all sales were made on account). 31. Paid accounts payable totaling, $157,000. 31. Prepaid factory insurance expired, $1,475. 31. Collected accounts receivable in the amount of S315,000 31. Record S1,000 depreciation on office equipment. 31. Accrued S500 interest expense. 31. Calculate the overallocated or underallocated overhead and close this amount to the Cost of Goods Sold account
