Question

Med v veppeds maaring van ww plied manufacturinhe rent from HICO motor balance connect The Foundational 15 rationis a manufacturer that uses chce t e balances were as follows: the company's L03-3, 103-4 Raw materials Work in process... - $40.000 Finished goods $18,000 $35,000 many applies overhead cost to jobs on the basis of direct labor-hours. For the current company's predetermined Overhead rate of $16.25 per direct laborehour was based on a la that estimated S650.00 of total manufacturing overhead for an estimated activity O direct labor-hours. The following transactions were recorded for the year. materials were purchased on account, SS10 CNC materials used in production, $180.000. All of of the raw materials were used as direct The company applies vear, the compan cost formula level of 40.000 Raw b. Raw mater materials labor, $150.000; sellin following costs were accrued for employee services: direct labor. $600,000: indirect $150.000; selling and administrative salaries. $240.0XX). ned various selling and administrative expenses (e.e.. advertising, sales travel costs, and finished goods warehousing). $367,000 urred various manufacturing overhead costs (e.e.. depreciation, insurance, and utilities). $500,000. Manufacturing overhead cost was applied to production. The company actually worked 41.000 direct labor-hours on all jobs during the year. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed dur- ing the year. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1.690,000 to manufacture according to their job cost sheets. h Required: 1 What is the journal entry to record raw materials used in production? 1 What is the ending balance in Raw Materials? 3. What is the journal entry to record the labor costs incurred during the year? 4 What is the total amount of manufacturing overhead applied to production during the year?

Number 2 and number 4.

Answer 1

According to the requirement of the question, we have to record journal entry to record raw materials, ending balance in Raw materials, Journal entry to record the labor cost incurred and total amount of manufacturing overhead applied.

Requirement 1:- What is the journal entry to record Raw Materials used in production?

Solution:-  Journal entry

Account Titles and Explanation	Debit ($)	Credit ($)
Work in Process	$480,000
Raw Materials		$480,000
(To record raw materials used in production)

Requirement 2:- What is the Ending Balance in Raw Materials?

Solution:- $70,000 is the Ending Balance in Raw Materials

Beginning balance	$40,000
Add: Purchases	$510,000
Less: Used	$(480,000)
Ending Balance	$70,000

Requirement 3:- What is the journal entry to record the labor cost incurred during the year?

Solution:-

Accounts Titles and Explanation	Debit ($)	Credit ($)
Work In Process	$600,000
Manufacturing Overhead	$150,000
Selling and administrative Salaries	$240,000
Salaries and Wages Payable		$990,000
(To record the labor cost incurred)

Requirement 4:- What is the total amount of manufacturing overhead applied to production during the year?

Solution:- $666,250

The total of manufacturing overhead applied to production is computed as follows:

Actual direct labor hours (a)	41,000
Predetermined Overhead Rate (b)	$16.25
Manufacturing overhead applied (a) * (b)	$666,250

Thank you..