Question
Yanna corporation's records show the following information for the month of October. The Company is using job order costing and normal cost valuation method. You
Yanna corporation's records show the following information for the month of October. The Company is using job order costing and normal cost valuation method. You are given the following journal entries for the the month: (assume that only one entry is made for each month)
1. Work in Process(direct labor) 10000
Salaries payable. 10000
2. Direct material inventory. 15000
Accounts payable. 15000
3.finished goods inventory. 37000
Work in process inventory. 37000
4. Cost of good sold. 45000
Finished goods inventory. 45000
This entry does not include any over or under-applied overhead. Over or under-applied overhead is closed/witten off to cost of goods sold account at the end of the month. For October, the amount written off was 5% of overgead applied for October.
The work in process ending accoubg balance on October 31 was twice the beginning balance. The direct material ending inventory balance on october 31 was 7000 less than the beginning bakance. The october income statement shows cost of goods sold of 45400.
Requirements :
1. Prepare the cost of goods manufactured schedule for the month of october.
2. Overhead is applied on the basisvof labor costs. What was the manufacturing overhead rate for october
3. What was the work in processbbeginning inventory balance?
4. What was the working in process ending inventory balance?
5. How much manufacturing iverhaed was incurred for october
6. Determind the finished goods beginning inventory on oct. 1
7. Determined the manufacturing overhead applied for the montn of october
Thank you.
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