Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials requisitioned for production

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials requisitioned for production cost $250,000 ( direct materials and indirect materials are proportioned by 6:2). b. Repairs costs incurred are $75,000 C. Raw Materials purchased on cash $150,000 d. Salaries Direct Labour Supervisors salaries (factory Marketing cost Admin Salaries $ 125,000 50,000 45,000 80,000 e. Selling commission cost incurred is $60,000 f. Insurance for factory $70,000. Admin insurance is 40% of the factory insurance g. Rent expense for the factory is $50,000 and the rent for the shop is $45,000 h. Supplies expense for the factory incurred during the month is $15,000 (on account] i. Use the information below to find the Predetermined Rate using machine hours as the cost driver I Estimated Overhead $ 76,000 Estimated Overhead Budgeted machine hours Actual machine hours Actual overhead $ 76,000 21,000 hours 30,000 hours 142,000 j. Journalize the applied cost used in section (1) k. Sold goods costing $400,000 for $650,000 1. Depreciation for equipment of factory for the period was $16700 m. Depreciation for the building (store) was $8,500 I n. $45,000 Cash was paid for the suppliers REQUIRED 1. Prepare Journal entries for the quarter 2. Is production cost underallpied or overapplied? [Marks 30 ] The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials requisitioned for production cost $250,000 ( direct materials and indirect materials are proportioned by 6:2). b. Repairs costs incurred are $75,000 c. Raw Materials purchased on cash $150,000 d. Salaries Direct Labour Supervisors salaries (factory Marketing cost Admin Salaries $ 125,000 50,000 45,000 80,000 I e. Selling commission cost incurred is $60,000 f. Insurance for factory $70,000. Admin insurance is 40% of the factory insurance g. Rent expense for the factory is $50,000 and the rent for the shop is $45,000 h. Supplies expense for the factory incurred during the month is $15,000 (on account) i. Use the information below to find the Predetermined Rate using machine hours as the cost driver Estimated Overhead Budgeted machine hours Actual machine hours Actual overhead $ 76,000 21,000 hours 30,000 hours 142,000 j. Journalize the applied cost used in section (i) k. Sold goods costing $400,000 for $650,000 1. Depreciation for equipment of factory for the period was $16700 m. Depreciation for the building (store) was $8,500 n. $45,000 Cash was paid for the suppliers REQUIRED 1. Prepare Journal entries for the quarter 2. Is production cost underallpied or overapplied? IMarkas 201

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Changing Academics Quality Audit And Its Perceived Impact

Authors: Ming Cheng

1st Edition

3639134273, 978-3639134278

More Books

Students also viewed these Accounting questions

Question

Identify five strategies to prevent workplace bullying.

Answered: 1 week ago