Bramble Company uses normal costing in its? job-costingsystem. The company produces custom bikes for toddlers. Thebeginning balances? (December 1) and ending balances? (as ofDecember? 30) in their inventory accounts are as?follows:
| Beginning Balance 12/1 | Ending Balance 12/30 |
| Material Control | $ 1,800 | $ 8,200 |
| Work-in-process control | 6,400 | 8,700 |
| Manufacturing Department Overhead Control | -- | 92,500 |
| Finished Goods Control | 4,100 | 19,100 |
Additional information? follows:
a. Direct materials purchased during December were $66,000.
b. Cost of goods manufactured for December was $231,000.
c. No direct materials were returned to suppliers.
d. No units were started or completed on December 31 and nodirect materials were requisitioned on December 31.
e. The manufacturing labor costs for the December 31 working?day: direct manufacturing? labor, $4,150?, and indirectmanufacturing? labor, $1,250.
f. Manufacturing overhead has been allocated at 150?%of directmanufacturing labor costs through December 31.
Question:
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 processduring December |
b. | The total amount of direct manufacturing labor recorded in workin process during December?(Hint: You have to solve requirements 2band 2c ?simultaneously) |
c. | The total amount of manufacturing overhead recorded in work inprocess 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 manufacturingoverhead. Assume that all? under- or overallocated manufacturingoverhead is closed directly to Cost of Goods Sold. |
