Answered step by step
Verified Expert Solution
Link Copied!

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 as follows: Raw

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Ravsten Company uses a job order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materiale Hork in process Finished woode $21,000 $12,000 631,000 The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 37,000 machine hours and incur $148,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased on account $220,000 b. Raw materials were requisitioned for use in production $200,000 (85% direct and 15% Indirect) c. The following costs were incurred for employee services DLT TOGE Todirect Tabour Sales contatons Administrative salaries $160,000 529.000 $39.000 $84.000 d. Heat, power, and water costs were incurred in the factory: $46,500 Prepaid insurance expired during the year $15,000 (B0% relates to factory operations, and 20% relates to selling and administrative activities) Advertising costs were incurred, $55,000 9. Depreciation was recorded for the year. $66,000 (75% relates to factory operations, and 25% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The company recorded 42,000 machine-hours for the year. 1. Goods that cost $503,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $746,500 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $496,000 Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

12th edition

1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411

Students also viewed these Accounting questions