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. The company

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. The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 37,300 machine-hours and incur $154,795 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account $226,000 b. Row materals were requisitioned for use in production: $203,000 (85\% direct and 15% indirect). c. The follewing costs were incurred for empioyee services: d. Heat power and water costs were incurred in the factory, $47,850 e. Prepald insurance expired during the year, $16,500 (80\% relates to factory operations, and 20% relates to selling and administrative activities): 9. Deprecia activitios! 1. Goods that cost $516,400 to manufacture according to the The company recorded 42,600 machine-hours for the year. I Sales for the year tota sheets Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for transaction/event, select "No journal entry required" in the first account field.) 1. soods nor cost 320,402 to manuldecture accorang to their joo cost sneets were vansierred to the timisnea goous warenouse. j. Sales for the year totalled $760,400 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $508,800 Required: 1. Prepare joumal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/ovent, select "No joumal entry required" in the first account field.) Journal entry worksheet 2.a. is manufacturing overhead underapplied or overapplied for the year? Underapplied overhead 2.a. Is manufacturing ovethead underapplied or overapplied for the year? Underapplied overhead Overapplied overhead 2-b. Prepare a joumal entry to properly dispose of any balance in the Manufacturing Overhead account, (Do not round intermediate calculations and round your final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Journal entry worksheet Record the entry to properly dispose of any balance in the Manufacturing Overhead account

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Driving Strategic Decisions From Financial Reports In The Global Economy

Authors: Samuel 0 Omoniyi

1st Edition

979-8853393608

More Books

Students also viewed these Accounting questions

Question

Question Can a self-employed person adopt a profit sharing plan?

Answered: 1 week ago