Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows:
Raw materials | $ | 25,000 | |
Work in process | $ | 13,600 | |
Finished goods | $ | 31,800 | |
The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,800 machine-hours and incur $166,320 in manufacturing overhead cost. The following transactions were recorded for the year:
Direct labour | $ | 174,400 | |
Indirect labour | $ | 30,600 | |
Sales commissions | $ | 41,400 | |
Administrative salaries | $ | 87,200 | |
Income statement | ||
Sales | 783700 | |
Cost of goods sold | 520,104 | |
Gross profit | 263,596 | |
Selling and administrative expenses | ||
Sales commissions | 41400 | |
Administrative expenses | 87200 | |
Insurance expense | 3800 | |
Advertising expense | 59000 | |
Depreciation expense | 17700 | 209100 |
Operating income | 54,496 |
Working
Transaction | Accounts | debit | credit |
a | Raw materials | 236000 | |
Accounts payable | 236000 | ||
b | Work in process | 176800 | |
Manufacturing overhead | 31200 | ||
Raw materials | 208000 | ||
c | Work in process | 174400 | |
Manufacturing overhead | 30600 | ||
Sales commission expense | 41400 | ||
Administrative salaries expense | 87200 | ||
Salaries and wages payable | 333600 | ||
d | Manufacturing overhead | 50100 | |
Accounts payable | 50100 | ||
e | Manufacturing overhead | 15200 | |
Insurance expense | 3800 | ||
Prepaid insurance | 19000 | ||
f | Advertising expense | 59000 | |
Accounts payable | 59000 | ||
g | Manufacturing overhead | 53100 | |
Depreciation expense | 17700 | ||
Accumulated expense | 70800 | ||
h | Work in process | 191,840 | |
Manufacturing overhead | 191,840 | ||
(43600*166320/37800) | |||
i | Finished goods | 539200 | |
Work in process | 539200 | ||
j | Accounts receivable | 783700 | |
sales | 783700 | ||
cost of goods sold | 530600 | ||
Finished goods | 530600 | ||
Ques 3-a Overapplied overheads | |||
Ques 3-b | Manufacturing Overhead | 11,640 | |
Work in process | 344 | ||
Finished goods | 800 | ||
cost of goods sold | 10,496 | ||
Raw Materials | Manufacturing overhead | |||||||
Beg Bal | 25000 | 208000 | b | Beg Bal | ||||
a | 236000 | b | 31200 | 191,840 | h | |||
c | 30600 | |||||||
End Bal | 53000 | d | 50100 | |||||
e | 15200 | |||||||
Cost of goods sold | g | 53100 | ||||||
Beg Bal | ||||||||
j | 530600 | |||||||
Work in process | ||||||||
End Bal | 530600 | Beg Bal | 13600 | |||||
b | 176800 | 539,200 | i | |||||
Finished goods | c | 174400 | ||||||
Beg Bal | 31800 | h | 191,840 | |||||
i | 539200 | 530600 | j | |||||
End Bal | 17440 | |||||||
End Bal | 40400 |
Cost of goods sold | 530600 | 90.17% | 11,640 | 10,496 |
WIP | 17440 | 2.96% | 11,640 | 345 |
FG | 40400 | 6.87% | 11,640 | 800 |
588440 | 11641 |
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows: Raw materials $ 25,000 Work in process $ 13,600 Finished goods $ 31,800 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,800 machine-hours and incur $166,320 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows: Raw materials $ 25,000 Work in process $ 13,600 Finished goods $ 31,800 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,800 machine-hours and incur $166,320 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows: Raw materials $ 19,500 Work in process $ 11,400 Finished goods $ 30,700 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,700 machine-hours and incur $168,820 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $21, 500 $12, 200 $31, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,100 machine-hours and incur $150,255 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were...
Prepare Journal Entries for 1. Raw materials were purchased on account: $236000 2. Raw materials were requisitioned for use in production: $208,000 (85% direct and 15% indirect) 3. Record the costs that were incurred for employee services. 4. Heat, power, and water costs were incurred in the factory: $50,100. 5. Prepaid insurance expired during the year: $19,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). 6. Advertising costs were incurred, $59,000. 7. Depreciation was recorded...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $16,500 $10,200 $30, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36.100 machine-hours and incur $155.230 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on...
1. Prepare Journal entries to record the transaction given above Ravsten Company uses a job-order costing system on January 1, the beginning of the current year, the company's inventory balances were as follows: .. Raw Materials ................... Work in Process.. Finished Goods .. $16,000 $10,000 $30,000 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,000 machine-hours and incur $153,000 in manufacturing overhead cost. The following...
Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 35,000 machine-hours and incur $183,750 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $309,000 (70% direct and 30% indirect). b. The following costs were incurred for employee services: Ravsten Company uses a job-order costing system. The company...
Ravsten Company uses a job-order costing system The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 41,000 machine-hours and incur $184,500 in manufacturing overhead cost. The following transactions occurred during the year: Raw materials requisitioned for use in production, $195,000 (70% direct and 30% indirect b. The following costs were incurred for employee services: S 165,000 s 23,000 S 15,000 S 30,000 Direct labor Indirect labor...
Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 42,000 machine-hours and incur $191,100 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $240,000 (75% direct and 25% indirect). b. The following costs were incurred for employee services: Direct labor $ 166,000 Indirect labor $ 24,000...