General Journal | Debit | Credit |
Raw material | 250,000 | |
Accounts payable | 250,000 | |
Work in progress | 235,000 | |
Raw material Inventory | 235,000 | |
Manufacturing Overhead | 62,100 | |
Utility Expense | 6,900 | |
Utilities payable | 69,000 | |
Work in progress | 280,000 | |
Manufacturing Overhead | 100,000 | |
Selling and administrative salaries | 160,000 | |
Wages payable | 540,000 | |
Manufacturing overhead | 64,000 | |
Accounts payable | 64,000 | |
Advertising expense | 146,000 | |
Accounts payable | 146,000 | |
Manufacturing overhead | 61,500 | |
Depreciation expense | 20,500 | |
Accumulated depreciation | 82,000 | |
Manufacturing overhead | 85,600 | |
Rental Expense | 21,400 | |
Rental Payable | 107,000 | |
Predetermined overhead rate = 350,000 / 1000 = 350 per direct labor hour | ||
Applied overhead = 350 x 1075 = 376250 | ||
Work in progress | 376,250 | |
Manufacturing Overhead | 376,250 | |
Finished goods | 870,000 | |
Work in progress | 870,000 | |
Accounts receivable | 1,700,000 | |
Sales revenue | 1,700,000 | |
Cost of goods sold | 900,000 | |
Finished goods | 900,000 |
Raw material Inventory | |||
Beg Bal | 40,000 | Work in progress | 235,000 |
Accounts payable | 250,000 | ||
Bal | 55,000 | ||
Work in progress | |||
Beginning Balance | 31,000 | Finished Goods | 870,000 |
Raw Material Inventory | 235,000 | ||
Wages Payable | 280,000 | ||
Manufacturing Overhead | 376,250 | ||
Balance | 52,250 | ||
Finished Goods | |||
Beg Bal | 70,000 | Cost of goods sold | 900,000 |
Work in progress | 870,000 | ||
Balance | 40,000 | ||
Manufacturing Overhead | |||
Utilities payable | 62,100 | Work in progress | 376,250 |
Wages payable | 100,000 | ||
Accounts payable | 64,000 | ||
Accumulated depreciation | 61,500 | ||
Rental payable | 85,600 | ||
3,050 | |||
Cost of goods sold | |||
Finished goods | 900,000 | ||
Schedule of Cost of Goods Manufactured | |
Direct Material | 235,000 |
Direct labor |
280,000 |
Manufacturing Over Head | 376,250 |
Total MOH | 891,250 |
Add: Beginning Work in progress | 31,000 |
Less: Ending Work in progress | (52,250) |
Cost of goods manufactured | 870,000 |
Manufacturing Overhead | 3,050 | |
Cost of goods sold | 3,050 |
Schedule of Cost of Goods Sold | |
Beginning Finished Goods | 70,000 |
Cost of Goods Manufactured | 870,000 |
Cost of Goods Available for Sale | 940,000 |
less Ending Finished Goods | (40,000) |
Un-adjusted Cost of Goods Sold | 900,000 |
less Over-applied Overhead | (3,050) |
Adjusted Cost of Goods Sold | 896,950 |
Income Statement | |
Revenue |
1,700,000 |
less Cost of Goods Sold | (896,950) |
Gross Margin | 803,050 |
less Expenses: | |
Utilities Expense | (6,900) |
Salaries Expense | (160,000) |
Advertising Expense | (146,000) |
Depreciation Expense | (20,500) |
Rental Expense | (21,400) |
Operating Income | 448,250 |
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $349,800 of manufacturing overhead for an estimated allocation base of 1,060 direct labor-hours. The following transactions took place during the year:Raw materials purchased on account, $230,000.Raw...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $399,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $329,000 of manufacturing overhead for an estimated allocation base of 940 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...