Question
You are asked to bring the following incomplete accounts of Anderson Printing, Inc. up to date through January 31,20X9. Consider the data that appear in
You are asked to bring the following incomplete accounts of Anderson Printing, Inc. up to date through January 31,20X9. Consider the data that appear in the T-accounts as well as additional information given in items (a) through (i).
Anderson's job-order costing system has two direct cost categories (direct material and direct manufacturing labor) and one indirect cost pool (manufacturing overhead, which is allocated using direct manufacturing labor costs).
Materials Inventory Control
12/31/20X8
Balance15,000 Dr
Wages Payable Control
1/31/20X9
Balance3,000 Cr
Manufacturing Department
Overhead Control
January20X9
Charges57,000 Cr
Finished Goods Inventory Control
12/31/20X8
Balance20,000 Dr
Additional Information:
a. Manufacturing department overhead is allocated using a budgeted rate set every December. Management forecasts next year's overhead and next year's direct manufacturing labor costs. The budget for 20X9 is $400,000 of direct manufacturing labor and $600,000 of manufacturing overhead.
b. The only job unfinished on January 31, 20X9 is No. 419, on which direct manufacturing labor costs are $2,000 (125 direct manufacturing labor hours) and direct material costs are $8,000.
c. Total material placed into production during January is $90,000.
d. Cost of goods completed during January is $180,000.
e. Material inventory as of January 31, 20X9 is $20,000.
f. Finished goods inventory as of January 31, 20X9 is $15,000.
g. All plant workers earn the same wage rate. Direct manufacturing labor hours for January totals 2,500. Other labor and supervision totals $10,000.
h. The gross plant payroll on January paydays totals $52,000. Ignore withholdings. All personnel are paid on a weekly basis.
i. All "actual" manufacturing department overhead incurred during January has already been posted.
Required:
a. Material purchased during January
b. Cost of Goods Sold during January
c. Direct Manufacturing Labor Costs incurred during January
d. Manufacturing Overhead Allocated during January
e. Balance, Wages Payable Control, December 31, 20X8
f. Balance, Work in Process Inventory Control, January 31, 20X9
g. Balance, Work in Process Inventory Control, December 31, 20X8
h. Balance, Finished Goods Inventory Control, January 31, 20X9
I. Manufacturing Overhead underapplied or overapplied for January
Please Help me solve these problems, I am having a hard time solving it on my own. Thank you
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