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ACCT6] 11 Spring 2018 AW Due Date: 6'" May 2018 Question Hello Company uses a job-order costing system and applies manufacturing overhead cost...

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ACCT6] 11 Spring 2018
AW Due Date: 6'“ May 2018 Question Hello Company uses a job-order costing system and applies manufacturing overhead cost to jobs
on the basis of the cost of direct materials used in production. lts predetermined overhead rate
was based on a cost formula that estimated $248,000 of manufacturing overhead for an estimated
allocation base of$155,000 direct material dollars. The following transactions took place during
the year (all purchases and services were acquired on account): Raw materials purchased, $142,000.
Raw materials requisitioned for use in production (all direct materials), $150,000.
Utility bills incurred in the factory, $21,000. Costs for salaries and wages were incurred as follows:
Direct labor $216,000
Indirect labor $90,000
Selling and administrative salaries $145,000 e. Maintenance costs incurred in the factory, $15,000. f. Advertising costs incurred, $130,000. g. Depreciation recorded for the year, $50,000 (90% relates to factory assets, and the remainder
relates to selling and administrative assets). h. Rental cost incurred on buildings, $90,000 (80% of the space is occupied by the factory, and
20% is occupied by sales and administration). Miscellaneous selling and administrative costs incurred, $17,000. Manufacturing overhead cost was applied to jobs, $L. Cost of goods manufactured for the year, $590,000. Sales for the year (all on account) totaled $1,000,000. These goods cost $600,000 according to
theirjob cost sheets. 9-9.7!” r?“- The balances in the inventory accounts at the beginning of the year were as follows: Raw Materials $18,000 Work in Process $24,000 Finished Goods $35,000
Required: 1. Prepare journal entries to record the above data. 2. Determine the ending balances in the inventory accounts and in the Manufacturing Overhead
account. ls Manufacturing Overhead under-applied or overapplied for the year? 3. Prepare a schedule of cost of goods manufactured. 4. Prepare ajournal entry to close any balance in the Manufacturing Overhead account to Cost of
Goods Sold. Prepare a schedule of cost of goods sold. 5. Prepare an income statement for the year.

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Question , ,_ ,..._..— L—‘M‘—_"~M’_‘“_‘___’-—J Selected T-accounts for Muscat Company are given below for the just completed year: Raw Materials Manuiacturing Overhead Bat. i '1 30,000 Credits ’? Debits 385.000 Credits 7
Debits 420.000 -
Ball 12:31 60.000 Work in Process Factory Wages Payable
Bal. 151 70.000 Credits 810.000 Debits 179.000 Bat. 1:1 10,000
Direct materials 320.000 -__-______________ -9’fil1§_-_--31§v9°2
92033999 ______ 4. 0?;‘5299- -_
Bad. 12:31 ? Finished Goods Cost of Goods Sold
Bal. 11’1 40.000 Credits ? Debits ?
.0394“ ______ 7’ .
Sal. 12531 1 30.000 Required: What was the cost of raw materials put into production during the year?
How much of the materials in (1) above consisted of indirect materials?
How much of the factory labor cost for the year consisted of indirect labor?
What was the cost of goods manufactured for the year? Was manufacturing overhead underapplied or overapplied? By how much? 9°N9‘WP9’N!‘ What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?
If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost?

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“r"? ' 6. Job 151 was one of the many jobs started and completed during the year. Thejob required
$3,600 in direct materials and 400 hours of direct labor time at a rate of $1 1 per hour. If the
job contained 500 units and the company billed at 75% above the unit product cost on the job
cost sheet, what price per unit would have been charged to the customer? ...,'..n..;-»;.. r. on. A A . .ysm n‘wl‘t

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