Question

You are required to show your work for this problem by handwriting any supporting calculations and journal entries or t-accounts on your own paper and submitting it after the test is over via the "Show Your Work Submission Link" in Blackboard. Label your work with the question number and label any journal entries with the corresponding letter.

Isiah’s Instruments manufactures and sells trombones and uses job costing to assign costs to his products. The company estimated that it would incur $135,150 in factory overhead costs and 13,250 direct labor-hours for the year. The April 1 balances in the inventory accounts follow:

Materials Inventory	$27,000
Work in Process Inventory	$10,500
Finished Goods Inventory	$54,000

The following transactions were recorded for the month of April:

1. Purchased materials on account, $95,000.
2. Issued $91,000 of materials to production, $4,000 of which was for indirect materials.
3. Incurred and paid payroll cost of $21,520: Direct labor cost $13,020 ($14/hour; total 930 hours); Indirect labor cost of $2,500; Selling and administrative salaries of $6,000.
4. Recognized depreciation on manufacturing assets for the month of $2,200.
5. Paid advertising expenses of $3,000.
6. Incurred other factory overhead costs of $1,600.
7. Applied factory overhead to production on the basis of direct labor hours.
8. Completed Job Beethoven during the month and transferred it to the finished goods warehouse. Total job costs were $29,110.
9. Sold Job Mozart on account for $59,000. Total job costs were $54,000.
10. Closed under- or over-applied overhead. Assume a beginning balance of $0 in overhead.

What is Isiah's predetermined overhead rate? $

What is Isiah's ending balance in Materials Inventory for the month of April? $

What is Isiah's ending balance in Work in Process Inventory for the month of April? $

How much total cost would appear on Isiah's April Income Statement? $

Answer 1

Please hit LIKE button if this helped. a $ Estimated Factory overhead Estimated DLH Predetermined Overhead Rate b a/b 135,150 13,250 10.20 $ Ending Balance of Material Inventory Ending Balance of Work in process Inventory Cost in Income Statement From T Account From T Account From T Account $ 31,000.00 $ 90,896.00 $ 54,814.00 Event Account Debit Credit Debit Raw Material inventory Debit Beginning Balance $ 27,000 b a $ 95,000 a $ 95,000 $ 91,000 Raw material inventory Accounts Payable $ 95,000 Гь Work in process inventory Factory Overhead Raw material Inventory $ $ 87,000 4,000 Ending Balance $ 31,000 $ 91,000 с Debit Work in process inventory Factory Overhead Selling and Admin Salaries Cash $ $ $ 13,020 2,500 6,000 $ 29,110 Work in Process Inventory Debit Beginning Balance $ 10,500 b $ 87,000 с $ 13,020 g $ 9,486 Ending Balance $ 90,896 $ 21,520 d $ 2,200 Factory Overhead Accounts Payable $ 2,200 e $ 3,000 Debit Advertising Expense Cash Finished Goods Inventory Debit Beginning Balance $ 54,000 i i $ 29,110 $ 3,000 $ 54,000 f $ 1,600 Factory Overhead Cash $ 1,600 Ending Balance $ 29, 110 g $ 9,486 Work in process inventory Factory Overhead 930 Houors *$10.20 $ 9,486 Debit Cost of Goods sold Debit $ 54,000 Overapplied $ 814 $ j Underapplied i $ 29,110 Finished Goods Inventory Work in process inventory $ 29,110 j $ 59,000 Ending Balance $ 54,814 Cash Sales $ 59,000 $ 54,000 Cost of goods sold Finished Goods Inventory $ 54,000 b 9,486 Manufacturing Overhead Debit Debit $ 4,000 g $ $ 2,500 Underapplied $ $ 2,200 $ 1,600 с 814 d f