Question

Brabb Company uses normal costing in its​ job-costing system. The company produces custom bikes for toddlers. The beginning balances​ (December 1) and ending balances​ (as of December​ 30) in their inventory accounts are as​ follows:

	Beginning Balance 12/1		Ending Balance 12/30
Materials Control	$2,100		$8,500
Work-in-Process Control	6,700		9,000
Manufacturing Department Overhead Control	-		94,000
Finished Goods Control	4,400		19,400

Additional information​ follows:

a.	Direct materials purchased during December were $66,300.
b.	Cost of goods manufactured for December was $234,000.
c.	No direct materials were returned to suppliers.
d.	No units were started or completed on December 31 and no direct materials were requisitioned on December 31.
e.	The manufacturing labor costs for the December 31 working​ day: direct manufacturing​ labor, $4,300​, and indirect manufacturing​ labor, $1,400.
f.	Manufacturing overhead has been allocated at 110​% of direct manufacturing labor costs through December 31.

1. Prepare journal entries for the December 31 payroll.

2. Use​ T-accounts to compute the​ following:

a. The total amount of materials requisitioned into work in process during December

b.The total amount of direct manufacturing labor recorded in work in process during December​(Hint: You have to solve requirements 2b and 2c ​simultaneously)

c. The total amount of manufacturing overhead recorded in work in process during December

d. Ending balance in work in​ process, December 31

e.Cost of goods sold for December before adjustments for​ under- or overallocated manufacturing overhead

3.Prepare closing journal entries related to manufacturing overhead. Assume that all​ under- or overallocated manufacturing overhead is closed directly to Cost of Goods Sold.

Answer 1

Solution : The beginning balances (Dec-I) & ending baiances accounts their inventory las of Dec 3o) in " Particolar Date Amoon't Amount Dec 31 Work in process arc DY $ 4300 $4300 To cuaqes payable arc Dec31 Manufacturing overhead ale Dr. $18.400 To Sara si es payable are CBeing Satanies payable recorded] $noo # Manufacturing labour costs for the Dec-3! working day direct manufacturing ia boy , 4.300 & indirect manufacturing $1,000

&, ar Raw material Date | Particular. Ammount Date Particular . Ammoont Dec 1 To opening By work in process 6.9000 balance 2,100 To purchases 66,300 Dec 31 8.400 68.400 * Materials control is $2100 * Direct purchased durini Dec were 66,300 : 2.100 +66.300 = 68,000 , Date Particular Ammount Datel particular Ammount balance lyfta 67.990 To Opening bevance 6.700 To Raw material 60.000 To Labouy 4300 To mano factoring 5.990 12/31 Byclosing havo 9;000 16,990 overhead (1 nov. of 76,990

finished goods control All Date Particulars I Ammount | Date 1 Particulat Ammunt Deci M400 To opening balance By cost of goods Soid 22.0000 To cost of goods 2360,000 131 By closing manufactore balance 238,400 18,000 338.000 * ☆ finish goods Controls $4.400 Cost of goods manufactured for dec was $234.000 - 234.000 + LUDO > 238,40D Datel Particulars Ammount Date Particular Ammouru 1400 To opening bal To la bour To manufacturing over head 12/31 To Applied | 12£31 By closing balance 948000 verb 5,990 86,610 . qu.000 qW000

transfered to cost of U So, it oven applied goods sold 3. Closing Journal related over allocated transfered to manufacturing overhead to cost of goods Date Particular Ammount A moodht Manufacturing ovey head alc 86 610 DY : To cost of goods sold 86610 A. Being cous decreased are recorded.