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QI: Costs incurred: Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect...

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Accounting

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QI: Costs incurred: Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect labor Depreciation, factory equipment Depreciation, office equipment Maintenance, factory equipment Miscellaneous factory overhead Rent, factory building Advertising expense Sales commissions S181.000 97.000 51.400 63.000 9,700 56,000 10.100 97,000 87,000 33,000 Inventories: January 1, 2017 S 10,400 8.500 62.000 December 31, 2017 $19.000 27,000 35,000 Direct materials Work in process Finished goods Visual Co, uses a normal-costing system and allocates overhead to work in process at a rate of $3.30 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Required: 1. Prepare journal entries to record the transactions for 2017 including an entry to close out over- or under allocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account

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