Quiz #7 Injection Molding Services uses a job-order costing system. The account balances at the Beg and End of the period for the product cost-related accounts are as follows: Beg Raw Materials Inventory Beg Work in Process Inventory Beg Finished Goods Inventory 180,000 320,000 100.000 End Raw Materials Inventory End Work in Process Inventory End Finished Goods Inventory $200,000 400,000 600,000 800,000 Cost of Goods Sold Manufacturing Overhead (credit) 90,000 Required Raw Materials purchased during the year were S500,000. Direct labor incurred amounts to $600,000. Hint: Make T-Accounts to help determine what journal entries need to be made and determine missing dollar amounts.
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Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below:
The following transactions occurred during April:
(a) Purchased materials on account at a cost of $233,270.
(b) Requisitioned materials at a cost of $111,800, of which $15,200 was for general factory use.
(c) Recorded factory labor of $225,300, of which $43,775 was indirect.
(d) Incurred other costs:
Selling expense $ 35,000
Factory utilities 22,900
Administrative expenses 51,050
Factory rent 11,900
Factory depreciation 19,200
(e) Applied overhead at a rate equal to 135 percent of direct labor cost.
(f) Completed jobs costing $263,450.
(g) Sold jobs costing $323,070.
(h) Recorded sales revenue of $514,000.
Required:
1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.)
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3-a. Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.)
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3-b. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?
a.Decrease
b.Increase
4. Prepare Lamondaâs cost of goods manufactured report for April. (Round your answers to 2 decimal places.)
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5. Prepare Lamondaâs April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)
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The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the companyâs fiscal year. |
a. | Raw materials purchased on account, $210,000. |
b. | Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials). |
c. | Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000. |
d. | Depreciation recorded on factory equipment, $40,000. |
e. | Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable). |
f. | 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. |
g. | Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. |
h. | 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. |
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1. | Prepare journal entries to record the information given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Raw materials purchased on account 210,000 Transaction General Journey Debit Credit A Raw materials issued to production, $119,000 ($178,000 direct materials and $12,000 indirect materials) Transaction General Journey Debit Credit B Direct Labor Cost incurred, $90,000; indirect labor cost incurred, $110,000 Transaction General Journey Debit Credit C Depreciation recorded on factory equipment, $40,000 Transaction General Journey Debit Credit D Other man ufacturing overhead cost incrred during October $70,000 (credit Accounts Payable) Transaction General Journey Debit Credit E The company applies manufactring overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October Transaction General Journey Debit Credit F. Production orders costing $520,000 according to their job cost sheets were completed during october and transferred to Finished goods Transaction General Journey Debit Credit G. Record the cost of goods sold Transaction General Journey Debit Credit H(1) REcord the sales account Transaction General Journey Debit Credit h(2)
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