Question
You are required to show your work for this problem by handwriting any supporting calculations and journal entries or t-accounts on your own paper and
You are required to show your work for this problem by handwriting any supporting calculations and journal entries or t-accounts on your own paper and submitting it after the test is over via the "Show Your Work Submission Link" in Blackboard. Label your work with the question number and label any journal entries with the corresponding letter.
Isiahs Instruments manufactures and sells trombones and uses job costing to assign costs to his products. The company estimated that it would incur $135,150 in factory overhead costs and 13,250 direct labor-hours for the year. The April 1 balances in the inventory accounts follow:
Materials Inventory | $27,000 |
Work in Process Inventory | $10,500 |
Finished Goods Inventory | $54,000 |
The following transactions were recorded for the month of April:
- Purchased materials on account, $95,000.
- Issued $91,000 of materials to production, $4,000 of which was for indirect materials.
- Incurred and paid payroll cost of $21,520: Direct labor cost $13,020 ($14/hour; total 930 hours); Indirect labor cost of $2,500; Selling and administrative salaries of $6,000.
- Recognized depreciation on manufacturing assets for the month of $2,200.
- Paid advertising expenses of $3,000.
- Incurred other factory overhead costs of $1,600.
- Applied factory overhead to production on the basis of direct labor hours.
- Completed Job Beethoven during the month and transferred it to the finished goods warehouse. Total job costs were $29,110.
- Sold Job Mozart on account for $59,000. Total job costs were $54,000.
- Closed under- or over-applied overhead. Assume a beginning balance of $0 in overhead.
What is Isiah's predetermined overhead rate? $
What is Isiah's ending balance in Materials Inventory for the month of April? $
What is Isiah's ending balance in Work in Process Inventory for the month of April? $
How much total cost would appear on Isiah's April Income Statement? $
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