Lakeland Industries assembles prestige manufactured homes. Itsjob costing system has two direct-cost categories (direct materialsand direct manufacturing labor) and one indirect-cost pool(manufacturing overhead allocated at a budgeted $30 permachine-hour in 2009). The following data (in millions) pertain tooperations for 2009:
Materials Control, beginning balance, January 1,2009 $12
Work-In-Process Control, beginning balance, January, 1,2009 2
Finished Goods Control, beginning balance, January 1,2009 6
Materials and supplies purchased oncredit 150
Direct materialsused 145
Indirect materials (supplies) issued to various productiondepts. 10
Direct manufacturing labor 90
Indirect manufacturing labor incurred by various productionsdepts. 30
Depreciation on plant and manufacturingequipment 19
Miscellaneous manufacturing overhead incurred (ordinarily wouldbe
Detailed as repairs, utilities, etc., with a correspondingcredit to
Various liabilityaccounts) 9
Manufacturing overhead allocated, 2,100,000 actualmachine-hours ?
Cost of goodsmanufactured 294
Revenues 400
Cost of goodssold 292
Required
Prepare journal entries. Number your entries. Post toT-accounts. What is the ending balance of Work-In-ProcessControl?
Show the journal entry for disposing of under or overallocatedmanufacturing overhead directly as a year-end write off to Cost ofGoods Sold. Post the entry to
T-accounts.
Lakeland Industries assembles prestige manufactured homes. Itsjob costing system has two direct-cost categories (direct materialsand direct manufacturing labor) and one indirect-cost pool(manufacturing overhead allocated at a budgeted $30 permachine-hour in 2009). The following data (in millions) pertain tooperations for 2009:
Materials Control, beginning balance, January 1,2009 $12
Work-In-Process Control, beginning balance, January, 1,2009 2
Finished Goods Control, beginning balance, January 1,2009 6
Materials and supplies purchased oncredit 150
Direct materialsused 145
Indirect materials (supplies) issued to various productiondepts. 10
Direct manufacturing labor 90
Indirect manufacturing labor incurred by various productionsdepts. 30
Depreciation on plant and manufacturingequipment 19
Miscellaneous manufacturing overhead incurred (ordinarily wouldbe
Detailed as repairs, utilities, etc., with a correspondingcredit to
Various liabilityaccounts) 9
Manufacturing overhead allocated, 2,100,000 actualmachine-hours ?
Cost of goodsmanufactured 294
Revenues 400
Cost of goodssold 292
Required
Prepare journal entries. Number your entries. Post toT-accounts. What is the ending balance of Work-In-ProcessControl?
Show the journal entry for disposing of under or overallocatedmanufacturing overhead directly as a year-end write off to Cost ofGoods Sold. Post the entry to
T-accounts.
