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Same options for the next 2 blanks Same option for the next blank Please fill in the # and $ amounts as well. Baab Corporation
Same options for the next 2 blanks
Same option for the next blank
Please fill in the # and $ amounts as well.
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Raw materials Work in process Finished Goods Beginning Balance $ 14,350 $ 27,350 $ 62,350 Ending Balance $ 22,350 $ 9,350 $ 77,350 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,350 machine-hours and incur $256,795 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,350. Raw materials were requisitioned for use in production, $307,350 ($280,650 direct and $26,700 indirect). The following employee costs were incurred direct labor, $377,350; indirect labor, $96,350; and administrative salaries, $172,350. Selling costs, $147,350. Factory utility costs, $10,350. Depreciation for the year was $148,000 of which $131,000 is related to factory operations and $17,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,070 machine-hours. Sales for the year totaled $1,267,000. . Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underapplied or overapplied? By how much? c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Baab Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning materials inventory 0 0 0 Add: Beginning work in process inventory Add: Ending raw materials inventory Add: Ending work in process inventory Add: Manufacturing overhead cost Add: Purchases of raw materials Total manufacturing costs added to production Total manufacturing costs to account for 0 0 0 Cost of goods manufactured $ 0 Baab Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning materials inventory 0 0 Deduct: Ending raw materials inventory Deduct: Ending work in process inventory Deduct: Indirect materials included in manufacturing overhead Deduct: Manufacturing overhead cost Deduct: Purchases of raw materials 0 0 Total manufacturing costs added to production Total manufacturing costs to account for 0 Cost of goods manufactured $ 0 Baab Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning materials inventory Total raw materials available 0 Total Raw materials used in production 0 Direct materials used in production 0 0 0 Beginning materials inventory Direct labor Ending raw materials inventory Indirect labor Manufacturing overhead applied to work in process Utilities, factory $ 0 Required B > Baab Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials Beginning materials inventory Total raw materials available 0 Total Raw materials used in production 0 Direct materials used in production 0 0 Total manufacturing costs added to production Total manufacturing costs to account for $ 0 Required B > Add: Beginning work in process inventory Add: Ending raw materials inventory Add: Ending work in process inventory Add: Manufacturing overhead cost Baab Corporation Schedule of Cost of Goods Manufactured Beginning work in process inventory Direct materials: Beginning materials inventory Total raw materials available 0 Total Raw materials used in production 0 Direct materials used in production 0 0 Total manufacturing costs added to production Total manufacturing costs to account for 0 $ 0 Required B > Deduct! Beginning work in process inventory Deduct: Ending raw materials inventory Deduct: Ending work in process inventory Deduct: Indirect materials included in manufacturing overhead Deduct: Manufacturing overhead cost Deduct: Purchases of raw materialsStep by Step Solution
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