Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning

image text in transcribed
image text in transcribed
Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $15.500 5.200 21,200 The following transactions occurred during January (a) Purchased materials on account for $26,200. () issued materials to production totaling $21,000, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials (c) Payroll costs totaling $19.500 were recorded as follows: $10.800 for assembly workers 2.700 for factory supervision 2.800 for administrative personnel 3.400 for sales commissions Id Recorded depreciation: $4800 for factory machines. $1,200 for the copier used in the administrative office (e) Recorded $1,700 of expired Insurance Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense m Paid 5.500 in other factory costs in cash a) Applied manufacturing overhead at a rate of 200 percent of direct labor cost (h) Completed jobs but one, the job cost sheet for the uncompleted job shows 52,200 for direct materials, $2,400 for direct labor, and $4,800 for applied overhead O Sold jobs costing $51,300. The revenue eamed on these jobs was 506,690 Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: Raw Materials Inventory Work in Process Inventory c. Finished Goods Inventory. d. Cost of als Sold e Manufacturing Overhead Selling General and Administrative Expenses Sales Revenue 2. Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance 3. Determine the amount of over of underapplied overhead 4. Compute adjusted gross proftassuming that any over or underapplied overhead balance is adjusted directly to Cost of Goods Sold lunadjusted gross profit= 2. manufacturing overhead 3. adjusted gross profit=

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

Financial Accounting

Authors: David Spiceland

6th Edition

1260786528, 9781260786521

More Books

Students also viewed these Accounting questions

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago