Question
schmeltz industries organized in january and recorded the following transactions during its first month of operations jan5-purchased materials on account for $800,00 jan9-used materials costing
schmeltz industries organized in january and recorded the following transactions during its first month of operations
jan5-purchased materials on account for $800,00
jan9-used materials costing $450,000 on job no.1001
jan14-used materials costing $200,000 on job no.1002
jan18- used materials costing $100,000 on job no.1003
jan25- applied the following direct labor costs to jobs: no.1001, $3600; no.1002 ,$5400; and no.1003 , $1350 (direct labor workers earn $18 per hour)
jan27-applied manufacturing overhead to all jobs at a rate of $450 per direct labor hour
jan28- completed and transfered job no.1001 and job no.1002 to finished goods warehouse
jan29- sold job no.1001 on account for $725,000
jan31- recorded and paid actual January manufacturing overhead costs of $248,750 cash
jan31- closed the manufacturing overhead account directly to costs of goods sold
question a : prepare a journal entries for each of these transactions
question b : compute the balance of the costs of goods sold account at January 31
question c : determine the companys inventory balance at January 31
question d : was manufacturing overhead in january overpaid or underpaid explain?
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