In addition, the following transactions occurred in 2022: 1. 2. 3. 4. 5. Raw materials purchased on account, $70,500. Incurred factory labor, $75,200, all is direct labor. Incurred the following overhead costs during the year: utilities $6,392, depreciation on manufacturing machinery $7,520, manufacturing machinery repairs $8,648, factory insurance $8,460 (Credit Accounts Payable and Accumulated Depreciation). Assigned $75,200 of factory labor to jobs. Applied $33,840 of overhead to jobs.
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- During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of $125,900. Overhead Is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.The followung cost data relate to the manufacturing activities of the Kamas Company during the most recent year. Fcatory overhead costs incurred during the year: Property taxes- factory P1,600 Utilities- factory 2,600 Indirect labor 5,100 Depreciation- factory 13,000 Insurance- factory 2,500 Total ACtual FOH costs P24,800 Other costs incurred during the year: Purchase of raw materials P15,000 Direct labor cost 22,000 Inventories: Raw materials, beginning P5,000 Raw materials, ending 4,400 Work-in process,beginning 3,500 Work-in process, ending 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. Th erate for the year just completed wa P4.00 per machine- hour; a total of 6,000 machine- hours were recorded for the year.…
- United Corporation recorded the following transactions for February 2019: a. February 1: $74,000 in raw materials were purchased on account. b. February 7: $63,000 in raw materials were requisitioned for use in production as direct materials c. February 8: $7,000 of raw materials were used as indirect materials. d. February 12: Total labor wages of $97,000 were incurred for direct labor e. February 15: Labor wages of $13.000 were incurred for indirect labor. 1. February 21: Additional manufacturing overhead costs of $180,000 were incurred. All of these costs will be paid in the future. Record the above transactions in United Corporation's journal. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (1.o., January 15 would be 15/Jan). Date + F + m 11 m F T General Journal Account/Explanation Page 02 PR Debit CreditThe following data summarize the operations during the year. Prepare a journal entry for eachtransaction.A. Purchase of raw materials on account: $3,000B. Raw materials used by Job 1: $500C. Raw materials used as indirect materials: $100D. Direct labor for Job 1: $300E. Indirect labor incurred: $50F. Factory utilities incurred on account: $700G. Adjusting entry for factory depreciation: $250H. Manufacturing overhead applied as percent of direct labor: 200%I. Job 1 is transferred to finished goodsJ. Job 1 is sold: $3,000K. Manufacturing overhead is over applied: $100In respect of a factory the following figures have been obtained for the year 2018: Particulars Rs. Cost of Materials 12,00,000 Factory Overheads 6,00,000 Selling Overheads 4,48,000 Distribution Overheads 2,80,000 Direct Wages 10,00,000 Administrative Overheads 6,72,000 Profit 8,40,000 A work order has been executed in 2019 and the following expenses have been incurred: Materials Rs. 16,000 and Wages Rs.10,000 Assuming that on 2019 the rate of factory overheads increased by 20%, distribution overheads have gone down by 10% and selling and administrative overheads have each gone up by 12.5%. At what price should the product be sold as to earn the same rate of profit on the selling price as in 2018? Factory overheads are based on direct wages while all other overheads are based on factory cost.
- The following transactions pertains to Bahrain Company for 2021: a) Materials purchased on account, $62,500. b) Materials used in production as follows: direct materials, $33,600, indirect materials, $5,400. c) Manufacturing labor incurred $35,000. (90% for direct labor and 10% for indirect labor.) d) Other various manufacturing overhead costs incurred during the year is $18,900. e) Manufacturing overhead is allocated at a budgeted overhead rate 120% of direct labor cost. f) the actual manufacturing overhead cost incurred at the end of the year was $27,800. The company decided to prorate the under-or-overallocated overhead using ending unadjusted balances of WIP. F.G and COGS before proration method Ending unadjusted balances before proration were as follows: $ 40,000 80,000 680,000 Work-in-Process (WIP) Finished Goods (FG) Cost of Goods Sold (GOGS) Required: Prepare the necessary journal entries to record the above transactions from a to f Answer: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,…1. FAN Company has the following data for the year 2021 (in thousand) January 1, 2021 December 31, 2021 Raw Materials Inventory $16,300 $15,000 Work-in-process Inventory $40,000 $40,110 Finished Goods Inventory $49,600 $44,256 During 2021 the amount of raw material purchased was $21,700 and direct labor costs incurred were $10,100. The finance department also provides the following additional data : Factory Machinery Rent 1,840 Indirect Materials $ 3,400 Delivery Expense $ 760 Factory Utilities $ 1,200 Depreciation on Factory Building 3,500 Sales Commissions $ 340 Administrative Expense $ 1,620 Factory Insurance $ 1,266 Sales Revenue $ 98,600 Factory Manager's Salary $ 2,240 Indirect Labor $ 5,670 Instructions: a. Prepare a cost of goods manufactured schedule for FAN Company for 2021! %24
- Charlie Corporation provided the following account balances for the year ended December 31:Selling expenses, P215,000Purchases of raw materials, P260,000Administrative expenses, P160,000Direct labor, P?Manufacturing overhead, P240,000Inventory balances at the beginning of the year were as follows:Raw materials, P50,000Work in process, P33,000Finished goods, P30,000The total manufacturing costs for the year were P675,000, where overhead is applied at 120% of direct labor cost; cost of goods available for sale totaled P720,000; cost of goods sold amount to P665,000.How much are the ending balances of raw materials, work in process, and finished goods inventory? RM Inventory, end – P75,000 ; WIP inventory, end – P15,000 ; FG inventory end – P25,000 RM Inventory, end – P75,000 ; WIP inventory, end – P18,000 ; FG inventory end – P55,000 RM Inventory, end – P25,000 ; WIP inventory, end – P15,000 ; FG inventory end – P55,000 RM Inventory, end – P25,000 ; WIP inventory, end –…The below transactions pertain to La Pharma Co. during the current year:1. Purchase of Direct Materials on credit: $512,0002,Usage of $275,000 Direct material and $62,000 indirect material3. Direct labor incurred amounted to $ 28,000 and was paid in cash4.Indirect labor incurred amounted to $5,000 on account5.Manufacturing overhead costs incurred are: Plant insurance $11,000 (paid cash), Utilities $8,000 (paid cash).Manufacturing repairs $4,800 (on account), Depreciation on manufacturing machinery $15,0006.Manufacturing overhead allocated amounted to $104,0007.Completion and transfer of jobs to finished goods: $605,0008. Sale of finished goods on account: cost of goods sold amount to $260,000 and sales amount to $392,000. Thecompany uses a perpetual inventory system. 1) Journalize the above transactions. Number your entries.The following data summarize the operations during the year. A. Purchase of raw materials on account. $3,000 B. Raw materials used by Job 1. $550 C. Raw materials used as indirect materials. $50 D. Direct labor for Job 1. $300 E. Indirect labor incurred. $60 F. Factory utilities incurred on account. $650 G. Adjusting entry for factory depreciation. $250 H. Manufacturing overhead applied as % of direct labor. 200% I. Job 1 is transferred to finished goods. J. Job 1 is sold. $2,900 K. Manufacturing overhead is overapplied. $80 Prepare a journal entry for each transaction. If an amount box does not require an entry, leave it blank. A. Raw Materials Inventory Raw Materials Inventory Accounts Payable Accounts Payable B. Work in Process Inventory Work in Process Inventory Raw Materials Inventory Raw Materials Inventory C. Manufacturing Overhead Manufacturing Overhead Raw Materials Inventory…