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Rundle Corporation makes custom - order furniture to meet the needs of persons with disabilities. On January 1 , Year 2 , the company had
Rundle Corporation makes customorder furniture to meet the needs of persons with disabilities. On January Year the company had the following account balances: $ for both cash and common stock. In Year Rundle worked on three jobs. The relevant direct operating costs follow.
Direct Labor Direct Materials
Job $ $
Job
Job
Total $ $
Rundles predetermined manufacturing overhead rate was $ per direct labor dollar. Actual manufacturing overhead costs amounted to $ Rundle paid cash for all costs. The company completed and delivered Jobs and to customers during the year. Job was incomplete at the end of the year. The company sold Job for $ cash and Job for $ cash. Rundle also paid $ cash for selling and administrative expenses for the year.
Rundle uses a justintime inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.
Required
Record the preceding events in a horizontal statements model. The first row shows beginning balances.
Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold in the expense category in the horizontal financial statements model.
Determine the gross margin for the year.Rundle Corporation makes customorder furniture to meet the needs of persons with disabilities. On January Year the company had the following account balances: $ for both cash and common stock. In Year Rundle worked on three jobs. The relevant direct operating costs follow.
Direct Labor Direct Materials
Job $ $
Job
Job
Total $ $
Rundles predetermined manufacturing overhead rate was $ per direct labor dollar. Actual manufacturing overhead costs amounted to $ Rundle paid cash for all costs. The company completed and delivered Jobs and to customers during the year. Job was incomplete at the end of the year. The company sold Job for $ cash and Job for $ cash. Rundle also paid $ cash for selling and administrative expenses for the year.
Rundle uses a justintime inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.
Required
Record the preceding events in a horizontal statements model. The first row shows beginning balances.
Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold in the expense category in the horizontal financial statements model.
Determine the gross margin for the year.
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