Raw materials Work in process Finished goods $ 74,000 $ 31,800 $ 52,200 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 $14.50 per direct labor-hour was based on a cost formula that estimated $580,000 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, $690,000. b. Raw materials used in production, $641,800. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $530,000; indirect labor, $150,000; selling and administrative salaries, $308,000. d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $457,000. e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $430,000. 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 $1,703,300 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 $3,510,000. The jobs cost $1,713,300 to manufacture according to their job cost sheets. 12. What is the ending balance in Finished Goods?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Raw materials
Work in process
Finished goods
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 $14.50 per direct labor-hour was based on a cost
formula that estimated $580,000 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, $690,000.
b. Raw materials used in production, $641,800. All of of the raw
materials were used as direct materials.
c. The following costs were accrued for employee services: direct
labor, $530,000; indirect labor, $150,000; selling and
administrative salaries, $308,000.
d. Incurred various selling and administrative expenses (e.g.,
advertising, sales travel costs, and finished goods warehousing),
$457,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation,
insurance, and utilities), $430,000.
$ 74,000
$ 31,800
$ 52,200
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 $1,703,300 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 $3,510,000. The jobs cost $1,713,300 to manufacture according
to their job cost sheets.
12. What is the ending balance in Finished Goods?
Debit
Beginning balance
(a)
Endina holongo
X Answer is not complete.
Finished Goods
74,000 X
690,000 X
764 000
Credit

Expert Solution

Step 1

Business transactions are tracked in the ledger accounts. A ledger account is used to store information, and it has beginning and ending balances that are altered by debits and credits throughout the course of an accounting period. The trial balance report, which is used to create financial statements, summarizes the data presented in each ledger accounts.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions