Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Vernon Manufacturing started in 2018 with the following account balances: Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory
Vernon Manufacturing started in 2018 with the following account balances: Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory (380 unitse $5.95 each) $6,000 5,151 5,400 1,400 890 2,261 Transactions during 2018 1. Purchased $2,890 of raw materials with cash. 2. Transferred $3,770 of raw materials to the production department. 3. Incurred and paid cash for 240 hours of direct labor@ $15.30 per hour 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.00 per direct labor hour. 5. Incurred actual overhead costs of $4,000 cash. 6. Completed work on 1,250 units for $6.00 per unit. 7. Paid $1,160 in selling and administrative expenses in cash. 8. Sold 1,250 units for $10,600 cash revenue (assume FIFO cost flow). 9 Vernon charges overapplied or underapplied overhead directly to Cost of Goods Sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started