Your boss is sick and you have to prepare the journal entries for the You are the new accounting clerk for the Mauve Mask Company. MMC is a face mask manufacturing company using job-order costing. At the beginning of the month, the company's inventory balances were as follows: Raw materials Inventory $923,128 Work in process Inventory.... $276,000 Finished goods Inventory.... . $750,000 The company applies overhead to jobs using a predetermined overhead rate based on direct labor hours. At the beginning of the year, the company estimated that it would work 5,000 direct labor hours and incur $90,000 in manufacturing overhead costs. The following transactions were recorded for the year: The company paid for the development of a new website to sell its product at $150,000 Raw materials costing $222,00 were purchased on account. . During the month $130,000 of materials were requisitioned for use in production, of which $120,000 worth of fabric was requisitioned for use in the production of the masks and directly traced to particular jobs in the factory. The remainder was indirect materials including clean fluid for the machines and hand sanitizer for employees. Employee costs were incurred: mask makers (direct factory labor) - $77,000 at an average of $22 per hour (for 3.500 direct labor hours) supervisors, plant security, plant maintenance and plant managers (indirect factory labor). $15,000 SGA-selling, general and administrative salaries, $50,000 Utility costs and property taxes of $30.000 were incurred (accrued) for the factory and $44,000 in costs were incurred for the headquarters building. Depreciation for the period was $100,000 of which $14,000 is related to the factory building and equipment while the remaining and $86,000 is related to the headquarters office building. Manufacturing overhead was applied to jobs. . . tionaaaaa . Raw materials costing $222,00 were purchased on account. During the month $130,000 of materials were requisitioned for use in production, of which $120,000 worth of fabric was requisitioned for use in the production of the masks and directly traced to particular jobs in the factory. The remainder was indirect materials including clean fluid for the machines and hand sanitizer for employees. Employee costs were incurred: mask makers (direct factory labor) - $77,000 at an average of $22 per hour (for 3.500 direct labor hours) o supervisors, plant security, plant maintenance and plant managers (indirect factory labor), $15,000 SGA-selling, general and administrative salaries, $50,000 Utility costs and property taxes of $30,000 were incurred (accrued) for the factory and $44,000 in costs were incurred for the headquarters building. Depreciation for the period was $100,000 of which $14.000 is related to the factory building and equipment while the remaining and $86,000 is related to the headquarters office building, Manufacturing overhead was applied to jobs. . Several batches of masks costing $450,000 based upon the completed job cost sheets were completed and moved to the delivery area. Face masks with a cost of $800,000 were sold on account for 200% of cost. . . . . The over or underapplied overhead journal entry must be made. (Be sure to indicate if overhead is over or underapplied.) Use the information above to answer the following questions in good form. When preparing journal entries, it may be difficult to get them to line up pr operly...therefore, indicate which is your debit and which is your credit. For example DR: Tax expense xx CR: Cash XXXX Cuestion 2 5 pts D Question 11 Indicate the Debits and Credits for the following: . Several batches of masks costing $450,000 based upon the completed job cost sheets were completed and moved to the delivery area. 12pt Paragraph p GOT O words Question 12 10 pts Indicate the Debits and Credits for the following: Masks with a cost of $800,000 were sold on account for 200% of cost. (you may list the entries as two separate journal entries, or you may combine them into one entry)
