waterway wings, inc manufacturers airplanes for stunt shows

Problem 4-32 Waterway Wings, Inc. manufactures airplanes for use in stunt shows. Waterway's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Waterway uses a job order costing system to accumulate product costs. At the end of 2016, Waterway's accountants developed the following expectations for 2017 based on the marketing department's sales forecast Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct meterials cost $1,099,000 41,000 12,000 1,520,000 Waterway's inventory count, completed on December 31, 2016, revealed the following ending inventory balances Raw Materials Inventory Work in Process Inventory Finished Goods Inventery 249,000 $625,000 $3,350,000 The company's 2017 payroll data revealed the following actual payroll costs for the year: Number Wage Rate Salary per Worked per ob Title Presidert and CEO Vice president and CFO Factory manager Assistant factory manager1 Machine operator Security guard, factory Forklift operator Corporate secretary anitor, foctory $178,000 $40,200 $31,500 2,150 The following information was taken from Waterway's Schedule of Plant Assets. All assets are depreciated using the straight-line method Value $650,000 $20.000 $125,000 30 Years 12 Yeas Factory equipment $2,000,000 Other miscellaneous costs for 2017 all paid in cash included Fectory insurance (ully expired) $12,100 Administrative office ubities Factory utilities Office supplies (fully consumed) $4,800 Additional information about Waterway's operations in 2017 includes the following: Raw materials purchases for the year amounted to $1,948,000. All materials were purchased on account. The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials. Waterway applied overhead to Work in Process Inventory based on direct materials cost. Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory. . waterway uses a markup of 80% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account. Note: This transaction requires two journal entries.) What was Waterway's predetermined overhead rate in 2017? (Round answer to 2 decimal places, eg. 52.75%.) Predetermined overhead rate 73.20 % of direct materials cost LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Your answer is partially correct. Try again. Prepare the journal entries to record Waterway's costs for 2017. (Use Salaries Payable and Wages Payable accounts for payroll costs.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually, Post entries in order presented in the problem. Round answers to O decimal places, e.g. 5,275) and Wages Expense Payable erhead Payable To necond salaried factory worcr c 3. Payable To recond hourly factory worker Manufacturing Overhead To necond factary insurance and factony unines) 8. Raw Materials Inventory Payable Te recand aw materials parchases Work in Process Inventory 9. acturing Overhead Direct Materials Invertory Te recond irect materials and indirect mutlwed in peeducti 10. Work in Process Inventory Manufacturing Overhead To apply overhead to work in process) 11. Finished Goods Inventory Work in Process Inventory (To record transfer of completed airplanes) 2. Accounts Payable Sales Revenue To record sale of airplanes to customers) 13. Cost of Goods Sold Finished Goods Inventory (To record cost of airplanes sold) Prepare the appropriate T-accounts for Raw Materials Inventory, Work-in- Process Inventory, Finished Goods Inventory, Manufacturing Overhead Control, Cost of Goods Sold, and Sales, and record Waterway's transactions for 2017. (Post entries in order presented in the problem. Round answers to O decimal places, e.g. 5,275) Raw Materials Work in Process Inventory Finished Goods Inventory Manufacturing Overhead Cost of Goods Sold Sales Revenue Make the adjusting entry necessary to close the under- or overapplied overhead to cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Your answer is incorrect. Try again. If Waterway chooses instead to prorate under- or overapplied overhead, what are the adjusted Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold account balances for 2017? (Round % of total to 2 decimal places, e.g. 55.75 and final answers to o decimal places, e.g. 5,275.) Cost of Geods Sold Your answer is incorrect. Try again. ob 3827 was started and completed in 2017. The job required 1,200 machine hours, 1,000 direct labor hours, and $75,000 in direct materials to complete. what was the total cost of this job? Using waterway's 80% markup, what sales price would be charged for this airplane? (Round answers to 0 decimal places, e.g. 5,275.) Your answer is incorrect. Try again. If Waterway had chosen to use machine hours as its overhead application base, what would the rate have been in 2017? (Round answer to 2 places, e.g. 52.75) Clickyou would like to Show Work for this question: gmsotn