Required: The following data (in thousands) pertain to 2021: 1. Prepare journal entries to summarize the 2021 transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.
2. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.
3. How did the company perform in 2021?
The Axel Company runs a custom goods production department. The custom production department uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). 720 Direct materials and supplies purchased on credit Direct materials used Indirect materials issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments $ $ $ $ $ 450 180 2,600 900 Depreciation on building and manufacturing equipment Miscellaneous manufacturing overhead incurred by various production departments (ordinarily would be detailed as repairs, photocopying, utilities, etc). $ $ 660 550 ? $ $ 2,800 4,200 1,800 $ Manufacturing overhead allocated at 120% of direct manufacturing labor costs Costs of goods manufactured Revenues Cost of goods sold (before adjustment for under - overallocated manufacturing overhead) Inventories, December 31, 2020(not 2021): Materials Control Work-in-Process Control Finished Goods Control $ $ 250 60 50 $ Required: The following data (in thousands) pertain to 2021: 1. Prepare journal entries to summarize the 2021 transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted. 2. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated. 3. How did the company perform in 2021? The Axel Company runs a custom goods production department. The custom production department uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). $ Direct materials and supplies purchased on credit Direct materials used Indirect materials issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments $ $ $ 720 450 180 2,600 900 $ 660 Depreciation on building and manufacturing equipment Miscellaneous manufacturing overhead incurred by various production departments (ordinarily would be detailed as repairs,photocopying, utilities, etc). $ $ 550 ? $ $ $ 2,800 4,200 1,800 Manufacturing overhead allocated at 120% of direct manufacturing labor costs Costs of goods manufactured Revenues Cost of goods sold (before adjustment for under - overallocated manufacturing overhead) Inventories, December 31, 2020(not 2021): Materials Control Work-in-Process Control Finished Goods Control $ 250 Asala $ 60 50 $
