Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $231,000 of manufacturing overhead for an estimated allocation base of $154,000 direct material dollars.

The following transactions took place during the year (all purchases and services were acquired on account):

a.	Raw materials purchased, $150,000.
b.	Raw materials requisitioned for use in production (all direct materials), $146,000.
c.	Utility bills incurred in the factory, $22,000.
d.	Costs for salaries and wages were incurred as follows:

Direct labor	$	223,000
Indirect labor	$	79,900
Selling and administrative salaries	$	141,000

e.	Maintenance costs incurred in the factory, $16,000.
f.	Advertising costs incurred, $129,000.
g.	Depreciation recorded for the year, $45,000 (80% relates to factory assets, and the remainder relates to selling and administrative assets).
h.	Rental cost incurred on buildings, $87,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration).
i.	Miscellaneous selling and administrative costs incurred, $11,000.
j.	Manufacturing overhead cost was applied to jobs, $ ?
k.	Cost of goods manufactured for the year, $557,000.
l.	Sales for the year (all on account) totaled $1,400,000. These goods cost $520,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were as follows:

Raw Materials	$	19,000
Work in Process	$	25,000
Finished Goods	$	36,000

Required:

1.	Prepare journal entries to record the above data.

	General Journal	Debit	Credit
a.	(Click to select)Advertising expenseRaw materialsMiscellaneous expenseSalaries and wages payableAccounts payableWork in processManufacturing overheadSelling and administrative salaries
	(Click to select)Selling and administrative salariesAccounts payableWork in processRaw materialsMiscellaneous expenseSalaries and wages payableManufacturing overheadAdvertising expense
b.	(Click to select)Manufacturing overheadRaw materialsMiscellaneous expenseAccounts payableSalaries and wages payableAdvertising expenseWork in processSelling and administrative salaries
	(Click to select)Selling and administrative salariesWork in processManufacturing overheadSalaries and wages payableMiscellaneous expenseAccounts payableRaw materialsAdvertising expense
c.	(Click to select)Advertising expenseRaw materialsMiscellaneous expenseManufacturing overheadAccounts payableWork in processSelling and administrative salariesSalaries and wages payable
	(Click to select)Advertising expenseRaw materialsWork in processManufacturing overheadMiscellaneous expenseAccounts payableService expensesSalaries and wages payable
d.	(Click to select)Rent expenseAdvertising expenseManufacturing overheadSelling and administrative salariesAccounts payableMiscellaneous expenseSalaries and wages payableWork in process
	(Click to select)Manufacturing overheadAccounts payableSalaries and wages payableAdvertising expenseMiscellaneous expenseWork in processRent expenseSelling and administrative salaries
	(Click to select)Rent expenseAccounts payableMiscellaneous expenseSelling and administrative salariesManufacturing overheadAdvertising expenseSalaries and wages payableWork in process
	(Click to select)Work in processSalaries and wages payableMiscellaneous expenseAccounts payableSelling and administrative salariesRent expenseManufacturing overheadAdvertising expense
e.	(Click to select)Depreciation expenseSalaries and wages payableAccumulated depreciationManufacturing overheadAdvertising expenseSelling and administrative salariesAccounts payableMiscellaneous expense
	(Click to select)Salaries and wages payableAccumulated depreciationAccounts payableAdvertising expenseMiscellaneous expenseManufacturing overheadDepreciation expenseSelling and administrative salaries
f.	(Click to select)Advertising expenseMiscellaneous expenseDepreciation expenseSelling and administrative salariesAccumulated depreciationAccounts payableSalaries and wages payableManufacturing overhead
	(Click to select)Salaries and wages payableSelling and administrative salariesAccumulated depreciationManufacturing overheadDepreciation expenseAccounts payableMiscellaneous expenseAdvertising expense
g.	(Click to select)Miscellaneous expenseSelling and administrative salariesDepreciation expenseManufacturing overheadAdvertising expenseAccumulated depreciationRent expenseAccounts payable
	(Click to select)Selling and administrative salariesRent expenseAccounts payableDepreciation expenseAccumulated depreciationMiscellaneous expenseAdvertising expenseManufacturing overhead
	(Click to select)Manufacturing overheadAccumulated depreciationMiscellaneous expenseDepreciation expenseAdvertising expenseRent expenseSelling and administrative salariesAccounts payable
h.	(Click to select)Depreciation expenseAccounts payableRent expenseManufacturing overheadAccumulated depreciationAdvertising expenseMiscellaneous expenseSelling and administrative salaries
	(Click to select)Accumulated depreciationRent expenseMiscellaneous expenseSelling and administrative salariesAdvertising expenseAccounts payableManufacturing overheadDepreciation expense
	(Click to select)Accumulated depreciationMiscellaneous expenseSelling and administrative salariesDepreciation expenseRent expenseAdvertising expenseManufacturing overheadAccounts payable
i.	(Click to select)Miscellaneous expenseSalaries and wages payableAccounts payableRent expenseSelling and administrative salariesWork in processManufacturing overheadAdvertising expense
	(Click to select)Selling and administrative salariesRent expenseAccounts payableManufacturing overheadWork in processAdvertising expenseMiscellaneous expenseSalaries and wages payable
j.	(Click to select)Work in processMiscellaneous expenseSalaries and wages payableRent expenseManufacturing overheadSelling and administrative salariesAdvertising expenseFinished goods
	(Click to select)Selling and administrative salariesManufacturing overheadMiscellaneous expenseAccounts payableSalaries and wages payableAdvertising expenseRent expenseWork in process
k.	(Click to select)Work in processRaw materialsFinished goodsCost of goods soldSelling and administrative salariesAccounts receivableAccounts payableSales
	(Click to select)Work in processSalesAccounts receivableAccounts payableFinished goodsCost of goods soldSelling and administrative salariesRaw materials
l	(Click to select)Selling and administrative salariesAccounts payableSalaries and wages payableWork in processRaw materialsSalesFinished goodsAccounts receivable
	(Click to select)Cost of goods soldAccounts payableWork in processAccounts receivableRaw materialsSelling and administrative salariesSalesSalaries and wages payable
	(Click to select)Raw materialsMiscellaneous expenseAccounts payableSalaries and wages payableFinished goodsSalesCost of goods soldSelling and administrative salaries
	(Click to select)Accounts receivableSalaries and wages payableFinished goodsAccounts payableMiscellaneous expenseCost of goods soldSelling and administrative salariesRaw materials

2.	Post your entries to T-accounts. (Dont forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.(Record the transactions in the given order.)

Accounts Receivable

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Raw Materials

Bal.			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
Bal.

Work in Process

Bal.			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
Bal.

Finished Goods

Bal.			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
Bal.

Manufacturing Overhead

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
Bal.

Accounts Payable

			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(j)(i)(k)(l)
			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
			Bal.

Accumulated Depreciation

			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Depreciation Expense

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Salaries & Wages Payable

			(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Selling and Administrative Salaries

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Miscellaneous Expense

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Advertising Expense

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Rent Expense

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Cost of Goods Sold

(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)

Sales

			(Click to select)(a)(b)(c)(d)(e)(f)(i)(g)(h)(j)(k)(l)

3.	Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values.)

Southworth Company Schedule of Cost of Goods Manufactured
Direct materials:
(Click to select)Work in process, beginningWork in process, endingRaw materials inventory, beginningRaw materials inventory, endingFinished goods inventory, beginning	$
(Click to select)DeductAdd: (Click to select)Raw materials inventory, endingPurchases of raw materialsWork in process, beginningFinished goods inventory, beginningWork in process, ending
(Click to select)Materials available for useWork in process, endingWork in process, beginningRaw materials inventory, beginningRaw materials inventory, ending
(Click to select)DeductAdd: (Click to select)Raw materials inventory, endingPurchases of raw materialsWork in process, endingWork in process, beginningRaw materials inventory, beginning
Materials used in production		$
(Click to select)Raw materials inventory, beginningPurchases of raw materialsRaw materials inventory, endingWork in process, endingDirect labor
(Click to select)Manufacturing overhead applied to work in processPurchases of raw materialsRaw materials inventory, endingDirect laborRaw materials inventory, beginning
Total manufacturing cost
(Click to select)DeductAdd: (Click to select)Raw materials inventory, endingWork in process, beginningPurchases of raw materialsRaw materials inventory, beginningWork in process, ending
(Click to select)AddDeduct: (Click to select)Work in process, endingRaw materials inventory, endingRaw materials inventory, beginningWork in process, beginningPurchases of raw materials
Cost of goods manufactured		$

4.	Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold. (Input all amounts as positive values.)

General Journal	Debit	Credit
(Click to select)Accounts receivableManufacturing overheadSalaries and wages payableCost of goods soldAccounts payableSelling and administrative salariesWork in processFinished goods
(Click to select)Accounts receivableWork in processSalaries and wages payableCost of goods soldAccounts payableSelling and administrative salariesFinished goodsManufacturing overhead

Schedule of cost of goods sold:
(Click to select)Goods available for saleFinished goods inventory, beginningUnderapplied overheadFinished goods inventory, endingUnadjusted cost of goods sold	$
(Click to select)AddDeduct: (Click to select)Unadjusted cost of goods soldOverapplied overheadUnderapplied overheadCost of goods manufacturedGoods available for sale
(Click to select)Finished goods inventory, beginningFinished goods inventory, endingCost of goods manufacturedUnadjusted cost of goods soldCost of goods available for sale
(Click to select)AddDeduct: (Click to select)Underapplied overheadFinished goods inventory, endingGoods available for saleOverapplied overheadUnadjusted cost of goods sold
(Click to select)Unadjusted cost of goods soldFinished goods inventory, endingFinished goods inventory, beginningUnderapplied overheadCost of goods manufactured
(Click to select)AddDeduct: (Click to select)Overapplied overheadUnderapplied overheadUnadjusted cost of goods soldFinished goods inventory, endingGoods available for sale
Adjusted cost of goods sold	$

5.	Prepare an income statement for the year. (Input all amounts as positive values.)

Southworth Company Income Statement
(Click to select)Advertising expenseSalesCost of goods soldDepreciation expenseRent expenseSelling and administrative salariesMiscellaneous expense		$
(Click to select)Advertising expenseSelling and administrative salariesMiscellaneous expenseRent expenseDepreciation expenseSalesCost of goods sold
(Click to select)Gross lossGross margin
Selling and administrative expenses:
(Click to select)Rent expenseSelling and administrative salariesAdvertising expenseUtilities expenseInsurance expenseMiscellaneous expenseDepreciation expense	$
(Click to select)Depreciation expenseRent expenseInsurance expenseMiscellaneous expenseSelling and administrative salariesUtilities expenseAdvertising expense
(Click to select)Utilities expenseSelling and administrative salariesMiscellaneous expenseAdvertising expenseRent expenseDepreciation expenseInsurance expense
(Click to select)Utilities expenseMiscellaneous expenseAdvertising expenseInsurance expenseSelling and administrative salariesRent expenseDepreciation expense
(Click to select)Depreciation expenseInsurance expenseUtilities expenseSelling and administrative salariesRent expenseAdvertising expenseMiscellaneous expense
(Click to select)Net operating lossNet operating income		$

6.

Job 218 was one of the many jobs started and completed during the year. The job required $3,100 in direct materials and 400 hours of direct labor time at a rate of $13 per hour. If the job contained 580 units and the company billed at 50% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? (Round your answer to 2 decimal places.)

Price charged for Job 218

$

per unit