Question

Problem 5-30 Comprehensive Problem (LO3, LO4, LOS, LO7) Mountain Manufacturing Company produces custom stamped metal parts for a variety of customers in Western Canada. During January, the company had two jobs in process. Job A was an order for 1,200 stamped parts and was started in December. Job Ahad $12,000 of manufacturing costs already accumulated on January 1. Job B was an order for 1,000 stamped parts and was started in January The company used a job-order costing system. Total manufacturing overhead for the year was estimated to be $576,000. Mountain Manufacturing uses direct labour-hours as the allocation base to establish its predetermined overhead rate. A total of 19,200 direct labour-hours are expected to be worked during the year. On January 1, the start of the company's fiscal year, inventory account balances were as follows: Raw Materials Work in Process Finished Goods $15,000 $12,000 $10,000 During the month of January, the following transactions were completed: a. Raw materials were purchased for $30,000. b. Raw materials were requisitioned for use in production in the amount of $35,000. Of this amount, $25,000 was related to manufacturing ($5,000 for Job A and $20,000 for Job B) and the rest were indirect materials. c. In January, $32,000 of direct labour ($7,000 for Job A and $25,000 for Job B). In addition, $2,000 of indirect labour costs were incurred. d. In January, the company incurred the following general factory costs: Utilities expense of $8,000, rent on factory equipment of $8,000, and insurance costs of $1,900. e. The company recognized $10,000 in depreciation on factory equipment. f. The company applied manufacturing overhead to Job A and Job B. A total of 350 direct labour-hours were spent completing JobA and 1,250 direct labour-hours were recorded for Job B. q. Administrative salaries of $30,000 were paid in January.

Need help with checking Q1-4 and finishing Q5... Thanks

Answer 1

INCOME STATEMENT FOR THE MONTH ENDED JANUARY 31
Sales		48300
less:Adjusted cost of goods sold		(26400)
Gross margin		21900
less:selling and administrative expense
Salaries expense	30000.
selling expense	6000
Total selling and administrative expense		(36000)
Operating income /(loss)		(14100)

checked Q1 to 4 ,They are absolutely perfect .Great work !