Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Raw materials Work in process Finished goods $ 84,500 $ 35,000 $ 44,100 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
image text in transcribed
image text in transcribed
image text in transcribed
Raw materials Work in process Finished goods $ 84,500 $ 35,000 $ 44,100 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 $12.50 per direct labor-hour was based on a cost formula that estimated $500,000 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, $614,000. b. Raw materials used in production, $567,600. All of of the raw materials were used as direct materials. C. The following costs were accrued for employee services: direct labor, $450,000; indirect labor, $150,000; selling and administrative salaries, $290,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $375,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $350,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. 9. Jobs costing $1,461,900 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,172,500. The jobs cost $1,471,900 to manufacture according to their job cost sheets. 2. What is the ending balance in Raw Materials? Raw Materials Beg. bal. End, bal. 3. What is the journal entry to record the labor costs incurred during the year? (If no entry i "No journal entry required" in the first account field.) 4. What is the total amount of manufacturing overhead applied to production during the year? Manufacturing overhead applied 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost 6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? (If no transaction/event, select "No journal entry required" in the first account field.) View transaction list 7. What is the ending balance in Work in Process? Work In Process Beg. bal. End. bal

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

Students also viewed these Accounting questions

Question

Who should apply a scorecard approach?

Answered: 1 week ago