Question

were as TOHOWS. Raw materials Work in process Pinished goods $ 84,500 $ 35,000 $ 44,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $12.50 per direct labor-hour was based on a cost formula that estimated $500,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $614,000 b. Raw materials used in production, $567,600. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $450,000; indirect labor, $150,000, selling and administrative salaries, $290,000 d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $375,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities)$350,000. f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. g. Jobs costing $1,461,900 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $3,172,500. The jobs cost $1,471.900 to manufacture according to their job cost sheets.

Answer 1

Req 6.
Journal entry for completion of Job:
S.no.	Accounts title and explanation		Debit $	Credit $
g.	Finished Goods inventory		14,61,900
	Work in Process inventory			14,61,900
	(for goods completed during the year)
Req 5.
Total Manufacturing cost added to WIP:
Direct material used					5,67,600
Direct Labour used					4,50,000
Manufacturing Overheads applied (41,000 DLH @ 12.50)	5,12,500
Total Manufacturing cost added to WIP:			15,30,100
Req 7.
WORK IN PROCESS INVENTORY
Beginning balance		35,000
b. Raw material inventory	5,67,600
c. Factory wages		4,50,000
f. Manufacturing overheads	5,12,500
				14,61,900	g. Finished Goods inventory
Ending balance		1,03,200
Req 12.
FINISHED GOODS INVENTORY
Beginning balance		44,100
g. Work in Process inventory	14,61,900
				14,71,900	h. Cost of goods sold
Ending balance		34,100