1journal entries
(a)
Dr | Raw material inventory | 200000 |
Cr | accounts payable | 200000 |
(b)
Dr | work in process | 185000 |
Cr | Raw material inventory | 185000 |
(c)
Dr | manufacturing overhead | 63000 |
Dr | utility expenses | 7000 |
Cr | utilities payable | 70000 |
(d)
Dr | work in process | 230000 |
Dr | manufacturing overhead | 90000 |
Dr | selling and administrative salaries | 110000 |
Cr | wages payable | 430000 |
(e)
Dr | manufacturing overhead | 54000 |
Cr | accounts payable | 54000 |
(f)
Dr | advertising expenses | 136000 |
Cr | accounts payable | 136000 |
(g)
Dr | manufacturing overhead | 76000 |
Dr | depreciation expenses | 19000 |
Cr | accumulated depreciation | 95000 |
(h)
Dr | manufacturing overhead | 102000 |
Dr | rental expenses | 18000 |
Cr | rental payable | 120000 |
(I).
predetermined overhead rate= 360000/900=400per direct labour hour
Applied overhead=975*400=390000
Dr | work in process | 390000 |
Cr | manufacturing overhead | 390000 |
(j)
Dr | finished goods | 770000 |
Cr | work in process | 770000 |
(k)
Dr | account receivable | 1200000 |
Cr | sales revenue | 1200000 |
Dr | cost of goods sold | 800000 |
Cr | finished goods | 800000 |
2.raw material inventory
Beginning balance | 30000 | work in process | 185000 |
Accounts payable | 200000 | balance | 45000 |
work in process
Beginning balance | 21000 | finished goods | 770000 |
Raw material inventory | 185000 | ||
Wages payable | 230000 | balance | 56000 |
Manufacturing overhead | 390000 | ||
Finished goods
Beginning balance | 60000 | cost of goods sold. 800000 |
Work in process | 770000 | balance. 30000 |
Manufacturing overhead
Utilities payable | 63000 | work in process | 390000 |
Wages payable | 90000 | ||
Accounts payable | 54000 | ||
Accumulated depreciation | 76000 | ||
Rental payable | 102000 | balance (over applied) | 5000 |
3.
Schedule of cost of goods manufactured
Direct material | 185000 |
Direct labour | 230000 |
Manufacturing overhead | 390000 |
Total manufacturing cost | 805000 |
Add beginning work in process | 21000 |
Less ending work in process | 56000 |
cost of goods manufactured | 770000 |
4A.
Dr | manufacturing overhead | 5000 |
Cr | cost of goods sold | 5000 |
4B
Schedule of cost of goo
Beginning finished goods | 60000 |
Cost of goods manufactured | 770000 |
Cost of goods available for sale | 830000 |
Less ending finished goods | 30000 |
Unadjusted cost of goods sold | 800000 |
Less over applied overhead | 5000 |
adjusted cost of goods sold | 795000 |
5.income statement
Revenue | 1200000 |
Less cost of goods sold | 795000 |
Gross margin | 405000 |
Less expense | |
Utilities expenses | 7000 |
Salaries | 110000 |
Advertising | 136000 |
Depreciation | 19000 |
Rental | 18000 |
Operating income | 115000 |
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Eroya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
Eroya 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 on...
Eroya 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 on...
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 $357,000 of manufacturing overhead for an estimated allocation base of 1,020 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 $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. The following transactions took place during the year. a. Raw materials purchased on...
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 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,...