The company produces gadgets for the coveted small appliance market. The following data reflect activity for the year

2017:

Inception

Co. uses a normal-costing system and allocates overhead to work in process at a rate of

$2.50

per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials.

Requirement 1. Prepare journal entries to record the transactions for

2017

including an entry to close out over-or under-allocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as a backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.)

Record the purchase of direct materials,

$128,000.

1. Prepare journal entries to record the transactions 2017 for including an entry to close out over-or under-allocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as a backup for the entry.
2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account.

www. www www me why wefan het www.no Data Table Judy 11 1 00 54 3.000 800 De 7.00 DO Requirements . D C w why w DHE . www Dane Done ception Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2017: Click the icon to view the data.) ception Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect material Read the nauirement ** Requirement 1. Prepare joumal entries to record the transactions for 2017 including an entry to close out over- or underallocated overhead to cost of goods so referenced as backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, 5128,000 Journal Entry Accounts Credit (1.) Materials Control 128,000 Accounts Payable Control 128,000 Dobit Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.) Source documents Subsidiary indgers (1.) direct material records purchase invoice accounts payable receiving report Record the direct materials used. Journal Entry Accounts Dubit Credit (2) Work In Process Control Mates Control for the year 2017 rect manufacturing labor dolar. Indirect materials are insignificant so there is no inventory account for indirect materials mor underlosted overhead to cost of goods sold. For each ouma entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger. I tries Data Table - 5,000 Costs incurred Purchases of direct materiais (net) on credit Direct manufacturing labor cost Indirect labor Depreciation factory equipment Depreciation office equipment Maintenance factory equipment Mscellaneous factory overhead Rant factory building Advertising expense Sales commissions 5128.000 88,000 54,700 32.000 8.500 22.000 200 75.000 06.000 mplete 35,000 Inventories Direct materials January 1, 2017 December 31, 2017 5 9.600 5 17.000 6.100 21.000 68.000 20.000 Credit Work in process Finished goods Done Print Done Clear All Chec Direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indi er- or underallocated overhead to cost of goods sold. For each journal entry indicate the source document the entries.) Requirements it 3,000 1. Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account. 2. mplete Print Done edit