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 $221,200 of manufacturing overhead for an estimated allocation base of $158,000 direct material dollars.

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

a.	Raw materials purchased, $151,000.
b.	Raw materials requisitioned for use in production (all direct materials), $149,000.
c.	Utility bills incurred in the factory, $21,000.
d.	Costs for salaries and wages were incurred as follows:

Direct labor	$	221,000
Indirect labor	$	70,400
Selling and administrative salaries	$	145,000

e.	Maintenance costs incurred in the factory, $19,000.
f.	Advertising costs incurred, $124,000.
g.	Depreciation recorded for the year, $43,000 (80% relates to factory assets, and the remainder relates to selling and administrative assets).
h.	Rental cost incurred on buildings, $85,000 (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 $540,000 according to their job cost sheets.

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

Raw materials	$	25,000
Work in process	$	21,000
Finished Goods	$	34,000

Required:

1.	Prepare journal entries to record the above data. (Omit the "$" sign in your response.)

	General Journal	Debit	Credit
a.	(Click to select)Salaries and wages payableRaw materialsWork in processMiscellaneous expenseAccounts payableManufacturing overheadSelling and administrative salariesAdvertising expense
	(Click to select)Miscellaneous expenseSalaries and wages payableAdvertising expenseAccounts payableSelling and administrative salariesWork in processRaw materialsManufacturing overhead
b.	(Click to select)Selling and administrative salariesMiscellaneous expenseRaw materialsManufacturing overheadSalaries and wages payableAdvertising expenseAccounts payableWork in process
	(Click to select)Selling and administrative salariesWork in processAdvertising expenseAccounts payableMiscellaneous expenseManufacturing overheadRaw materialsSalaries and wages payable
c.	(Click to select)Salaries and wages payableAdvertising expenseSelling and administrative salariesWork in processMiscellaneous expenseManufacturing overheadRaw materialsAccounts payable
	(Click to select)Service expensesWork in processAdvertising expenseAccounts payableManufacturing overheadMiscellaneous expenseSalaries and wages payableRaw materials
d.	(Click to select)Salaries and wages payableSelling and administrative salariesMiscellaneous expenseRent expenseManufacturing overheadAccounts payableAdvertising expenseWork in process
	(Click to select)Salaries and wages payableWork in processAdvertising expenseAccounts payableManufacturing overheadRent expenseSelling and administrative salariesMiscellaneous expense
	(Click to select)Manufacturing overheadRent expenseSelling and administrative salariesAdvertising expenseWork in processAccounts payableMiscellaneous expenseSalaries and wages payable
	(Click to select)Advertising expenseManufacturing overheadRent expenseAccounts payableWork in processMiscellaneous expenseSelling and administrative salariesSalaries and wages payable
e.	(Click to select)Accumulated depreciationMiscellaneous expenseAccounts payableManufacturing overheadDepreciation expenseSelling and administrative salariesAdvertising expenseSalaries and wages payable
	(Click to select)Accumulated depreciationSelling and administrative salariesAccounts payableManufacturing overheadAdvertising expenseSalaries and wages payableDepreciation expenseMiscellaneous expense
f.	(Click to select)Accounts payableSelling and administrative salariesAdvertising expenseSalaries and wages payableManufacturing overheadDepreciation expenseAccumulated depreciationMiscellaneous expense
	(Click to select)Advertising expenseAccounts payableSalaries and wages payableAccumulated depreciationManufacturing overheadDepreciation expenseMiscellaneous expenseSelling and administrative salaries
g.	(Click to select)Accumulated depreciationMiscellaneous expenseSelling and administrative salariesAdvertising expenseDepreciation expenseManufacturing overheadRent expenseAccounts payable
	(Click to select)Depreciation expenseAccumulated depreciationMiscellaneous expenseAdvertising expenseRent expenseSelling and administrative salariesManufacturing overheadAccounts payable
	(Click to select)Accumulated depreciationDepreciation expenseSelling and administrative salariesAccounts payableMiscellaneous expenseManufacturing overheadRent expenseAdvertising expense
h.	(Click to select)Accumulated depreciationSelling and administrative salariesRent expenseAccounts payableMiscellaneous expenseAdvertising expenseManufacturing overheadDepreciation expense
	(Click to select)Accumulated depreciationRent expenseMiscellaneous expenseAdvertising expenseSelling and administrative salariesDepreciation expenseManufacturing overheadAccounts payable
	(Click to select)Accumulated depreciationRent expenseAccounts payableSelling and administrative salariesMiscellaneous expenseDepreciation expenseManufacturing overheadAdvertising expense
i.	(Click to select)Work in processMiscellaneous expenseSelling and administrative salariesAccounts payableManufacturing overheadAdvertising expenseSalaries and wages payableRent expense
	(Click to select)Salaries and wages payableRent expenseAdvertising expenseManufacturing overheadSelling and administrative salariesMiscellaneous expenseAccounts payableWork in process
j.	(Click to select)Manufacturing overheadFinished goodsMiscellaneous expenseAdvertising expenseWork in processSalaries and wages payableSelling and administrative salariesRent expense
	(Click to select)Manufacturing overheadAccounts payableWork in processSelling and administrative salariesRent expenseMiscellaneous expenseAdvertising expenseSalaries and wages payable
k.	(Click to select)Selling and administrative salariesCost of goods soldWork in processRaw materialsAccounts receivableAccounts payableFinished goodsSales
	(Click to select)SalesCost of goods soldRaw materialsFinished goodsAccounts receivableSelling and administrative salariesWork in processAccounts payable
l	(Click to select)Finished goodsAccounts receivableSalesRaw materialsWork in processAccounts payableSalaries and wages payableSelling and administrative salaries
	(Click to select)Salaries and wages payableCost of goods soldRaw materialsSelling and administrative salariesAccounts receivableSalesAccounts payableWork in process
	(Click to select)Salaries and wages payableAccounts payableRaw materialsSalesFinished goodsSelling and administrative salariesCost of goods soldMiscellaneous expense
	(Click to select)Miscellaneous expenseSalaries and wages payableSelling and administrative salariesRaw materialsFinished goodsCost of goods soldAccounts payableAccounts receivable

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. Omit the "$" sign in your response.)

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. Omit the "$" sign in your response.)

Southworth Company Schedule of Cost of Goods Manufactured
Direct materials:
(Click to select)Raw materials inventory, beginningRaw materials inventory, endingWork in process, endingFinished goods inventory, beginningWork in process, beginning	$
(Click to select)DeductAdd: (Click to select)Purchases of raw materialsFinished goods inventory, beginningWork in process, beginningRaw materials inventory, endingWork in process, ending
(Click to select)Work in process, endingWork in process, beginningRaw materials inventory, beginningMaterials available for useRaw materials inventory, ending
(Click to select)AddDeduct: (Click to select)Work in process, beginningRaw materials inventory, beginningPurchases of raw materialsRaw materials inventory, endingWork in process, ending
Materials used in production		$
(Click to select)Raw materials inventory, endingDirect laborWork in process, endingRaw materials inventory, beginningPurchases of raw materials
(Click to select)Manufacturing overhead applied to work in processPurchases of raw materialsDirect laborRaw materials inventory, beginningRaw materials inventory, ending
Total manufacturing cost
(Click to select)DeductAdd: (Click to select)Raw materials inventory, endingWork in process, beginningWork in process, endingPurchases of raw materialsRaw materials inventory, beginning
(Click to select)AddDeduct: (Click to select)Raw materials inventory, endingWork in process, endingPurchases of raw materialsWork in process, beginningRaw materials inventory, beginning
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. Omit the "$" sign in your response.)

General Journal	Debit	Credit
(Click to select)Finished goodsAccounts receivableCost of goods soldWork in processSelling and administrative salariesAccounts payableManufacturing overheadSalaries and wages payable
(Click to select)Accounts receivableWork in processAccounts payableManufacturing overheadFinished goodsSelling and administrative salariesCost of goods soldSalaries and wages payable

Schedule of cost of goods sold:
(Click to select)Underapplied overheadFinished goods inventory, beginningGoods available for saleUnadjusted cost of goods soldFinished goods inventory, ending	$
(Click to select)AddDeduct: (Click to select)Overapplied overheadUnadjusted cost of goods soldCost of goods manufacturedUnderapplied overheadGoods available for sale
(Click to select)Finished goods inventory, endingUnadjusted cost of goods soldCost of goods manufacturedCost of goods available for saleFinished goods inventory, beginning
(Click to select)AddDeduct: (Click to select)Goods available for saleUnderapplied overheadUnadjusted cost of goods soldOverapplied overheadFinished goods inventory, ending
(Click to select)Cost of goods manufacturedFinished goods inventory, beginningFinished goods inventory, endingUnderapplied overheadUnadjusted cost of goods sold
(Click to select)DeductAdd: (Click to select)Finished goods inventory, endingGoods available for saleUnderapplied overheadUnadjusted cost of goods soldOverapplied overhead
Adjusted cost of goods sold	$

5.	Prepare an income statement for the year. (Input all amounts as positive values. Omit the "$" sign in your response.)

Southworth Company Income Statement
(Click to select)SalesAdvertising expenseRent expenseCost of goods soldMiscellaneous expenseSelling and administrative salariesDepreciation expense		$
(Click to select)Selling and administrative salariesRent expenseSalesMiscellaneous expenseAdvertising expenseCost of goods soldDepreciation expense
(Click to select)Gross lossGross margin
Selling and administrative expenses:
(Click to select)Advertising expenseDepreciation expenseUtilities expenseMiscellaneous expenseInsurance expenseRent expenseSelling and administrative salaries	$
(Click to select)Rent expenseUtilities expenseInsurance expenseMiscellaneous expenseDepreciation expenseSelling and administrative salariesAdvertising expense
(Click to select)Depreciation expenseSelling and administrative salariesMiscellaneous expenseInsurance expenseRent expenseAdvertising expenseUtilities expense
(Click to select)Insurance expenseMiscellaneous expenseDepreciation expenseUtilities expenseAdvertising expenseRent expenseSelling and administrative salaries
(Click to select)Advertising expenseDepreciation expenseUtilities expenseMiscellaneous expenseInsurance expenseRent expenseSelling and administrative salaries
(Click to select)Net operating incomeNet operating loss		$

6.

Job 218 was one of the many jobs started and completed during the year. The job required $3,600 in direct materials and 500 hours of direct labor time at a rate of $11 per hour. If the job contained 540 units and the company billed at 65% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price charged for Job 218

$

per unit