ACCT208 Study Guide - Quiz Guide: Finished Good, Income Statement

254 views1 pages

olivedolphin719

1 Apr 2016

School

University of Delaware

Department

Accounting

Course

ACCT208

Professor

Dragone Debra

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Yuletide company is a manufacturing irm that uses job-order costing. The company s inventory balances were as follows at the beginning and end of the calendar year 2014. The company applies overhead to jobs using a predetermined overhead rate based on machine- hours. At the beginning of the year, the company estimated that it would work 17,000 machine- hours and incur ,000 in overhead cost. The following transactions were recorded for the year. The following transactions occurred during 2014: direct materials purchased during 2014 cost a total of ,000, direct materials used in production: ,000, the following employee costs were incurred: Actual cd hours * pohr = 240,000: finished goods warehousing expense was ,000, sales for the year totaled ,282,000. Prepare a schedule of cost of goods manufactured in good form (remember that means a.

Related Questions

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

a. Raw materials purchased on account, $210,000.

b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials).

c. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000.

d. Depreciation recorded on factory equipment, $104,000.

e. Other manufacturing overhead costs accrued during October, $129,000

f. The company applies a manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,100 machine-hours were used in October.

g. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

h. Jobs that had cost $449,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 24% above cost.

Required:

1. Prepare journal entries to record the transactions above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account record the transactions given above. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $37,000

erincrab353

Alake Company is a manufacturing firm that uses job-ordercosting. At the beginning of the year, the company's inventorybalances were as follows:

Raw materials$19,000

Work in process$82,000

Finished goods$32,000

The company applies overhead to jobs using a predeterminedoverhead rate based on machine-hours. At the beginning of the year,the company estimated (budget) that it would work 40,000machine-hours and incur $280,000 in manufacturing overhead cost(predetermined overhead rate). The following transactions wererecorded for the year:

a.Raw materials were purchased, $400,000.

b. Raw materials were requisitioned for use in production,$450,000 ($20,000 indirect).

c. The following employee costs were incurred: direct labor,$230,000; indirect labor, $65,000; and administrative salaries,$117,000.

d. Selling costs, $120,000.

e. Factory utility costs, $48,000.

f. Depreciation for the year was $150,000 of which $130,000 isrelated to factory operations and $20,000 is related to selling,general, and administrative activities.

g. Manufacturing overhead was applied to jobs. The actual levelof activity for the year was 38,000 machine-hours.

h.The cost of goods manufactured (completed) for the year was$800,000.

i. Sales for the year totaled $1,200,000 and the costs on thejob cost sheets of the goods that were sold totaled $900,000.

j. The balance in the Manufacturing Overhead account was closedout to Cost of Goods Sold. Show a "T" Account to calculate theover/under applied overhead.

Required: Prepare the appropriate journal entryfor each of the items above (a. through j. â one journalfor each item - TEN JOURNALS). You can assume that alltransactions with employees, customers, and suppliers wereconducted onaccount or credit.