v Salvo Company manufactures products to customer specifications a job order system is used to accumulate costs in the companys plant On July 1, 2020, the start of Salvo Companys fiscal year, inventory balances were as follows Raw materials $25,000 Work in Process 10,000 Finished Goods 40,000 The company applies overhead cost to jobs on a basis of machine hours of operation time For the fiscal year starting July 1, 2020, it was estimated that the plant would operate at 45,000 machine hours and incur $270,000 in manufacturing overhead cost During the year, the following transactions were completed Raw materials purchased on account, $275,000 Raw materials requisitioned for use in production, $280,000 (materials costing $220,000 were chargeable directly to jobs the remaining materials were indirect) Costs for employee services were incurred as follows Direct factorylabour $180,000 Indirect factorylabour 72,000 Sales Commissions 63,000 Administrative salaries 90,000 Prepaid insurance expired during the year, $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities) Utility costs incurred in the factory, $57,000 Advertising costs incurred, $140,000 Depreciation recorded on equipment, $100,000 (Some $88,000 of this amount was on equipment used in factory operations the remaining $12,000 was on equipment used in selling and administrative activities ) Manufacturing overhead cost was applied to production The company recorded 50,000 machine hours of operating time during the year Goods costing $675,000 to manufacture were transferred into the finished goods warehouse Sales (all on account) to customers during the year totaled $1,250,000 These goods had cost $700,000 to manufacture Required Prepare journal entries to record the above transactions for the year (use letters instead of dates to identify your transactions) Prepare a journal entry that is required for the over under applied manufacturing overhead Salvo Company manufactures products to customer specifications a job order system is used to accumulate costs in the companys plant On July 1, 2020, the start of Salvo Companys fiscal year, inventory balances were as follows Raw materials $25,000 Work in Process 10,000 Finished Goods 40,000 The company applies overhead cost to jobs on a basis of machine hours of operation time For the fiscal year starting July 1, 2020, it was estimated that the plant would operate at 45,000 machine hours and incur $270,000 in manufacturing overhead cost During the year, the following transactions were completed a Raw materials purchased on account, $275,000 b Raw materials requisitioned for use in production, $280,000 (materials costing $220,000 were chargeable directly to jobs the remaining materials were indirect) c Costs for employee services were incurred as follows Direct factorylabour $180,000 Indirect factorylabour 72,000 Sales Commissions 63,000 Administrative salaries 90,000 d Prepaid insurance expired during the year, $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities) e Utility costs incurred in the factory, $57,000 f Advertising costs incurred, $140,000 g Depreciation recorded on equipment, $100,000 (Some $88,000 of this amount was on equipment used in factory operations the remaining $12,000 was on equipment used in selling and administrative activities ) h Manufacturing overhead cost was applied to production The company recorded 50,000 machine hours of operating time during the year i Goods costing $675,000 to manufacture were transferred into the finished goods warehouse j Sales (all on account) to customers during the year totaled $1,250,000 These goods had cost $700,000 to manufacture Required 1 Prepare journal entries to record the above transactions for the year (use letters instead of dates to identify your transactions) 2 Prepare a journal entry that is required for the over under applied manufacturing overhead

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v Salvo Company manufactures products to customer specifications; a job-order system is used to accumulate costs in the companys plant. On July 1, 2020, the

Raw materials $25,000

Work in Process 10,000

Finished Goods 40,000

The company applies overhead cost to jobs on a basis of machine-hours of operation time. For the fiscal year starting July 1, 2020, it was estimated that the plant would operate at 45,000 machine-hours and incur $270,000 in manufacturing overhead cost. During the year, the following transactions were completed:

Raw materials purchased on account, $275,000.
Raw materials requisitioned for use in production, $280,000 (materials costing $220,000 were chargeable directly to jobs; the remaining materials were indirect).
Costs for employee services were incurred as follows:

Direct factorylabour $180,000

Indirect factorylabour 72,000

Sales Commissions 63,000

Administrative salaries 90,000

Prepaid insurance expired during the year, $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).
Utility costs incurred in the factory, $57,000.
Advertising costs incurred, $140,000.
Depreciation recorded on equipment, $100,000. (Some $88,000 of this amount was on equipment used in factory operations; the remaining $12,000 was on equipment used in selling and administrative activities.)
Manufacturing overhead cost was applied to production. The company recorded 50,000 machine-hours of operating time during the year.
Goods costing $675,000 to manufacture were transferred into the finished goods warehouse.
Sales (all on account) to customers during the year totaled $1,250,000. These goods had cost $700,000 to manufacture.

Required:

Prepare journal entries to record the above transactions for the year (use letters instead of dates to identify your transactions)
Prepare a journal entry that is required for the over/under applied manufacturing overhead.

Salvo Company manufactures products to customer specifications; a job-order system is used to accumulate costs in the companys plant. On July 1, 2020, the start of Salvo Companys fiscal year, inventory balances were as follows: Raw materials $25,000 Work in Process 10,000 Finished Goods 40,000 The company applies overhead cost to jobs on a basis of machine-hours of operation time. For the fiscal year starting July 1, 2020, it was estimated that the plant would operate at 45,000 machine-hours and incur $270,000 in manufacturing overhead cost. During the year, the following transactions were completed: a. Raw materials purchased on account, $275,000. b. Raw materials requisitioned for use in production, $280,000 (materials costing $220,000 were chargeable directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct factorylabour $180,000 Indirect factorylabour 72,000 Sales Commissions 63,000 Administrative salaries 90,000 d. Prepaid insurance expired during the year, $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $57,000. f. Advertising costs incurred, $140,000. g. Depreciation recorded on equipment, $100,000. (Some $88,000 of this amount was on equipment used in factory operations; the remaining $12,000 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to production. The company recorded 50,000 machine-hours of operating time during the year. i. Goods costing $675,000 to manufacture were transferred into the finished goods warehouse. j. Sales (all on account) to customers during the year totaled $1,250,000. These goods had cost $700,000 to manufacture. Required: 1. Prepare journal entries to record the above transactions for the year (use letters instead of dates to identify your transactions) 2. Prepare a journal entry that is required for the over/under applied manufacturing overhead.