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Chapter 17 Required Homework 1. award: 3 out of 3.00 points Conklin Corporation recorded the following activities during its first month of operations: Purchased materials costing $250,000. Used direct materials in production costing $230,000. Incurred direct labor costs of $300,000, of which $275,000 had actually been paid at the end of the month. Applied manufacturing overhead at a rate of $15 per direct labor hour. (Direct labor workers earn $25 per hour.) Incurred actual manufacturing overhead costs of $175,000. Transferred completed jobs costing $520,000 to finished goods. Sold completed jobs for $700,000. The cost applied to the jobs sold totaled $480,000. Closed the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the month. Incurred selling and administrative costs of $100,000 during the month. a. Prepare Conklin Corporation's income statement for its first month of operations. Ignore income taxes. (Input all amounts as positive values. Omit the "$" sign in your response.) Sales $ 700,000 Cost of goods sold 475,000 Gross profit $ 225,000 Selling & administrative 100,000 Net income $ 125,000 b. Determine the company's inventory balances at the end of its first month of operations. (Omit the "$" sign in your response.) Ending Materials Inventory $ 20,000 Ending Work in Process Inv. $ 190,000 Ending Finished Goods Inv. $ 40,000 2. award: 3 out of 3.00 points Rush Company budgeted that it would incur $180,000 of manufacturing overhead costs in the upcoming period. By the end of the period, Rush had actually incurred manufacturing overhead costs totaling $192,000. Other information from the company's accounting records is provided below: Beginning Work in Process Inventory was $30,000, whereas ending Work in Process Inventory was $25,000. Total manufacturing costs of $470,000 were charged to Work in Process Inventory during the period. This amount included direct materials costs of $200,000. Workers logged 5,400 direct labor hours during the period. Beginning Finished Goods Inventory was $50,000. The Manufacturing Overhead account had a $30,000 debit balance immediately prior to closing at the end of the period. Manufacturing overhead was applied to jobs throughout the period on the basis of direct labor hours. Prior to any adjustment to account for overapplied or underapplied manufacturing overhead, Cost of Goods Sold had a $520,000 debit balance. Sales for the period totaled $1,050,000, whereas selling and administrative expenses totaled $400,000. a. Determine how much manufacturing overhead was applied to jobs during the period. (Omit the "$" sign in your response.) Manufacturing overhead applied $ 162,000 b.... View Full Document

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