Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Raw materials Work in process Finished goods $ 62,500 $ 23,200 $ 36,900 The company applies overhead cost to jobs on the basis of direct

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Raw materials Work in process Finished goods $ 62,500 $ 23,200 $ 36,900 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $11.00 per direct labor-hour was based on a cost formula that estimated $440,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year a. Raw materials were purchased on account, $694,000. b. Raw materials used in production, $644,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services direct labor, $390,000; Indirect labor, $150,000; selling and administrative salaries, $246,000 d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $430,000. e Incurred various manufacturing overhead costs leg. depreciation, Insurance, and utilities). $290,000 1. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct lobor-hours on all jobs during the year 0 Jobs costing $1,403,100 to manufacture according to their job cost sheets were completed during the year. n. Jobs were sold on account to customers during the year for a total of $2,827,500. The Jobs cost $1,413,100 to manufacture according to their job cost sheets Foundational 3-10 (Algo) 10. What is the cost of goods available for sale during the year? Cost of goods available for sale I. f15 View transaction list Journal entry worksheet ed

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_2

Step: 3

blur-text-image_3

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

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions