transactions occurred in October: a. Raw materials purchased on account, $ 209,000. b. Raw materials used in production, $190,000 ($152, 000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $ 49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105, 000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine - hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing $513,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 24% above cost. Required: Prepare journal entries to record the transactions given above. Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Required 1 Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000.
transactions occurred in October: a. Raw materials purchased on account, $ 209,000. b. Raw materials used in production, $190,000 ($152, 000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $ 49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105, 000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine - hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing $513,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 24% above cost. Required: Prepare journal entries to record the transactions given above. Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Required 1 Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in
each account, assuming Work in Process has a beginning balance of $36,000.
Manufacturing Overhead
Required 1 Required 2
Beginning balance
a.
b.
C.
d.
Ending balance
Debit
Credit
Beginning balance
e.
rf.
g.
Ending balance
Debit
< Required 1
Work in Process
Required 2 >
Credit
Transcribed Image Text:transactions occurred in October: a. Raw materials purchased on account, $
209,000. b. Raw materials used in production, $190,000 ($152, 000 direct
materials and $38,000 indirect materials). c. Accrued direct labor cost of $
49,000 and indirect labor cost of $21,000. d. Depreciation recorded on
factory equipment, $105,000. e. Other manufacturing overhead costs
accrued during October, $129,000. f. The company applies manufacturing
overhead cost to production using a predetermined rate of $7 per machine -
hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing
$513,000 were completed and transferred to Finished Goods. h. Jobs costing
$452,000 were shipped to customers. These jobs were sold on account at 24%
above cost. Required: Prepare journal entries to record the transactions given
above. Prepare T - accounts for Manufacturing Overhead and Work in Process.
Post the relevant transactions from above to each account. Compute the
ending balance in each account, assuming Work in Process has a beginning
balance of $36,000. Required 1 Prepare T - accounts for Manufacturing
Overhead and Work in Process. Post the relevant transactions from above to
each account. Compute the ending balance in each account, assuming Work in
Process has a beginning balance of $36,000.
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