Salerno Manufacturing Company is a small family owned business that makes specialty plastic products. Since it was started three years ago, the company has grown quickly and now employs ten production people. Because of its size, the company uses a job order cost accounting system that was designed around a periodic inventory system. Work sheets and special analyses are used at Salerno to account for manufacturing costs and inventory valuations. Two months ago, in May 20X4, the company's accountant quit. You have been called in to help management. The attached information has been given to you. The company purchased materials only once, during February, for $126,500. All jobs use the same materials. For the current year, the company has been using a predetermined manufacturing overhead rate of 140% of direct labor cost. So far, two jobs, K-2 and K-4, have been completed. Jobs K-1 and K-2 have been shipped to customers. Job K-1 contained 3,200 units; Job K-2, 5,500 units; and Job K-4, 4,600 units. REQUIRED: (1) (2) (3) (4) Using the attached forms, reconstruct the job order cost sheets for each job worked on during the period. Using the attached form, calculate the unit costs for Job K-1, Job K-2, and Job K-4. Round the unit costs to the nearest cent (two decimal places). Using the attached form, calculate the cost of goods manufactured and the cost of goods sold for the period. Using the attached forms and the information provided in the problem, prepare T account analyses for all inventory accounts and the cost of goods sold account for the current year.

Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,359,000, and management budgeted 90,000 direct labor hours. Mooresville had no Materials, Work-in- Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 5,600 square feet of oak on account at $26 per square foot. b. Purchased 110 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,920 square feet of oak and 37 gallons of glue for production. d. Incurred and paid payroll costs of $200,500. Of this amount, $52,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,250 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,800. The premium had been paid in March.…

4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August.

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products based on machine-hours. The predetermined overhead rate was based on a cost formula that estimates $765,000 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. During the year, a large quantity of furniture on the market caused Luzadis to cut production and build inventories. The company provided the following data for the year: Machine-hours Manufacturing overhead cost Inventories at year-end: Raw materials Work in process (includes overhead applied of $62,100) Finished goods (includes overhead applied of $105,570) Cost of goods sold (includes overhead applied of $453,330) Required: 1. Compute the underapplied or overapplied overhead. 69,000 $ 719,000 $ 14,000 $ 183,000 $ 311,100 $ 1,335,900 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold.…