50.1K

Verified Solution

Question

Accounting

image
image
Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2016 follow: Raw Materials Inventory Work in Process Inventory Finished Goods Iventory $16,700 5,800 20,900 The following transactions occurred during January (a) Purchased materials on account for $27,800. (b) Issued materials to production totaling $21,800, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials (c) Payroll costs totaling $18,200 were recorded as follows $11,500 for assembly workers 1,600 for factory supervision 2,700 for administrative personnel 2,400 for sales commissions (d) Recorded depreciation: $4,400 for machines, $900 for the copier used in the administrative office (e) Recorded $1,900 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense () Paid $5,100 in other factory costs in cash. (g) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. (h) Completed all jobs but one; the job cost sheet for this job shows $2,100 for direct materials, $2,000 for direct labor, and $4,000 for applied overheacd () Sold jobs costing $51,400. The revenue earned on these jobs was $66,820 Required 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post all amounts separately. Do not combineladd any dollar amounts when posting to the t-accounts.) a. Raw Materials Inventory b. Work in Process Inventory c. Finished Goods Inventory d. Cost of Goods Sold o. Selling, General, and Administrative Expenses. t. Sales Revenue . Other accounts (Cash, Payables, etc.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students