Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1. 2022,

image text in transcribedimage text in transcribedimage text in transcribed

Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1. 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,400. direct labor $14,640, and manufacturing overhead $19,520. As of January 1, Job 49 had been completed at a cost of $109,800 and was part of finished goods inventory. There was a $18,300 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $148,840 and $192.760, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $109,800 on account. 2. Incurred factory labor costs of $85,400. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $14,640: and various other manufacturing overhead costs on account $19,520. 4. Assigned direct materials and direct labor to jobs as follows.

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

Accounting Information Systems

Authors: Marshall B. Romney, Paul J. Steinbart

13th edition

133428532, 978-0133428537

More Books

Students also viewed these Accounting questions

Question

What is the basis for setting tolerance? LO.1

Answered: 1 week ago