Question
Seton 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:
Seton 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: Beginning Balance Ending Balance Raw materials $ 14,000 $ 22,000 Work in process $ 27,000 $ 9,000 Finished Goods $ 62,000 $ 77,000 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 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the year:
a. Raw materials were purchased, $315,000.
b. Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect).
c. The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000.
d. Factory utility costs, $10,000.
e. Depreciation for the year was $120,000.
f. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours. Hint: calculate POHR and then apply to actual activity
3. Prepare a cost of goods manufactured schedule.
4. Based on the cost of goods manufactured result, prepare journal entry (g) (and T-account entries) to move completed jobs from Work in Process to Finished Goods
computer writing please
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