Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Ravsten Company uses a job - order costing system. On January 1 , the beginning of the current year, the company s inventory balances were
Ravsten Company uses a joborder costing system. On January the beginning of the current year, the companys inventory balances were as follows: Raw materials $ Work in process $ Finished goods $ The company applies overhead cost to jobs on the basis of machinehours. For the current year, the company estimated that it would work machinehours and incur $ in manufacturing overhead cost. The following transactions were recorded for the year: a Raw materials were purchased on account: $ b Raw materials were requisitioned for use in production: $ direct and indirect c The following costs were incurred for employee services: Direct labour $ Indirect labour $ Sales commissions $ Administrative salaries $ d Heat, p e Prepaid insurance expired during the year: $ relates to factory operations, and relates to selling and administrative activities f Advertising costs were incurred, $ g Depreciation was recorded for the year: $ relates to factory operations, and relates to selling and administrative activities h Manufacturing overhead cost was applied to production. The company recorded machinehours for the year. i Goods that cost $ to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j Sales for the year totalled $ and were all on account. The total cost to manufacture these goods accordi Required: Prepare journal entries to record the transactions given above. Do not round intermediate calculations. If no entry is required for a transactionevent select No journal entry required" in the first account field. Prepare Taccounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these Taccounts dont forget to enter the opening balances in your inventor a Is manufacturing overhead underapplied or overapplied for the year? multiple choice Underapplied overhead Overapplied overhead b Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. Round your percentages and final answers to decimal places. If no entry is required for a transactionevent select No journal entry required" in the first account field. Prepare an income statement for the year. Do not round intermediate calculations and round your final answers to nearest whole dollar amount.
Ravsten Company uses a joborder costing system. On January the beginning of the current year, the companys inventory balances were as follows:
Raw materials $
Work in process $
Finished goods $
The company applies overhead cost to jobs on the basis of machinehours. For the current year, the company estimated that it would work machinehours and incur $ in manufacturing overhead cost. The following transactions were recorded for the year:
a Raw materials were purchased on account: $
b Raw materials were requisitioned for use in production: $ direct and indirect
c The following costs were incurred for employee services:
Direct labour $
Indirect labour $
Sales commissions $
Administrative salaries $
d Heat, p
e Prepaid insurance expired during the year: $ relates to factory operations, and relates to selling and administrative activities
f Advertising costs were incurred, $
g Depreciation was recorded for the year: $ relates to factory operations, and relates to selling and administrative activities
h Manufacturing overhead cost was applied to production. The company recorded machinehours for the year.
i Goods that cost $ to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
j Sales for the year totalled $ and were all on account. The total cost to manufacture these goods accordi
Required:
Prepare journal entries to record the transactions given above. Do not round intermediate calculations. If no entry is required for a transactionevent select No journal entry required" in the first account field.
Prepare Taccounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these Taccounts dont forget to enter the opening balances in your inventor
a Is manufacturing overhead underapplied or overapplied for the year?
multiple choice
Underapplied overhead
Overapplied overhead
b Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. Round your percentages and final answers to decimal places. If no entry is required for a transactionevent select No journal entry required" in the first account field.
Prepare an income statement for the year. Do not round intermediate calculations and round your final answers to nearest whole dollar amount.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started