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Hi every body i have these balances for a company x


Raw materials $40,000

Work in process $30,000

Finished goods $60,000


for the current year the company estimated that it would work150.000 machine hours and incu $900,000 in manufacturing overheadcosts. the following occurred during the year


1- purchased raw materials $820,000

2- Raw materials requisitioned for production, $720,000 directand $40,000 indirect.

3-factory labor costs recorded, $150,000 direct and $220,000indirect labor.

4- other manufacturing overhead costs incurred , $660,000

5- overhead was applied to production due to greater thanexpected demand the company worked 160,000 machine hours during theyear

6- goods costing $1,800,000 were completed

7- Goods costing $1,740,000 to manufacture were sold on accountfor $3,000,000


required


1- cost of goods manufactured statement.

2- assume the company incurred selling and administrative costsof $1,120,000 prepare an income statement for the company.


Im dying to fiqure out the answer.

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Bunny Greenfelder
Bunny GreenfelderLv2
28 Sep 2019

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The Sierra Inc uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2016, the company estimated that 150,000 machine hours would be worked and $900,000 overhead cost would be incurred during 2016.

The balances of raw materials, work in process (WIP), and finished goods at the beginning of 2016 were as follows:

Raw materials

$

40,000

Work in process

30,000

Finished goods

60,000

The Fine manufacturing company recorded the following transactions during 2016:

a.

Raw materials purchased on account, $820,000.

b.

Raw materials were requisitioned for use in production, $760,000 ($720,000 direct materials and $40,000 indirect materials).

c.

Direct labor, $150,000; indirect labor, $220,000; sales commission, $180,000; and administrative salaries, $400,000.

d.

Sales travel costs were $34,000.

e.

Utility costs incurred in the factory, $86,000.

f.

Advertising expenses were $360,000.

g.

Depreciation for the year was $700,000 ($560,000 relates to factory and $140,000 relates to selling and administrative activities).

h.

Insurance expired during the year, $20,000 ($14,000 relates to factory operations and $6,000 relates to selling and administrative activities).

i.

Fine manufacturing company worked 160,000 machine hours. Manufacturing overhead was applied to production.

j.

Goods costing $1,800,000 were completed during the year.

k.

The goods costing $1,740,000 were sold to customers for $3,000,000.

Required:

Prepare journal entries, T-accounts and income statement (Links to an external site.)Links to an external site. from the above information.

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year.

  1. Raw materials purchased on account, $210,000.
  2. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
  3. Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.
  4. Depreciation recorded on factory equipment, $40,000.
  5. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable).
  6. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October.
  7. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
  8. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.

Required:
  1. Prepare journal entries to record the information given above.
  2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

EXERCISE 3-12 Applying Overhead; Cost of Goods Manufactured [LO3-2, L03-6, LO3-7] The following cost data relate to the manufacturing activities of Chang Company during the just completed year: $ 15,000 130,000 8,000 70,000 240,000 10,000 $473,000 Manufacturing overhead costs incurred: Indirect materials ....... Indirect labor Property taxes, factory ...... Utilities, factory Depreciation, factory ....... Insurance, factory ......... ........... ......... Total actual manufacturing overhead costs incurred ........ Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost ... Inventories: Raw materials, beginning ....... Raw materials, ending ....... Work in process, beginning ...... Work in process, ending ...... $400,000 $60,000 $20,000 $30,000 $40,000 $70,000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year.

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