Question

In: Accounting

The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31,...

The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31, 2018:

Beginning Ending

Inventories:

Raw materials $68,000 $76,000

Work in process 36,000 56,000

Finished goods 44,000 32,000

Total $148,000 $164,000

In addition, the following transactions occurred in 2018:

1. Raw materials purchased on account, $280,000.

2. Incurred factory labor, $320,000, all is direct labor. (Credit Factory Wages Payable).

3. Incurred the following overhead costs during the year: Utilities $27,200, Depreciation on manufacturing machinery $32,000, Manufacturing machinery repairs $36,800, Factory insurance $36,000 (Credit Accounts Payable and Accumulated Depreciation).

4. Assigned $320,000 of factory labor to jobs.

5. Applied $ 140,000 of overhead to jobs.

Instructions

(a) Journalize the above transactions.

(b) Reproduce the manufacturing cost and inventory accounts. Use T-accounts.

(c) From an analysis of the accounts, compute the following:

1. Raw materials used.

2. Completed jobs transferred to finished goods.

3. Cost of goods sold.

4. Under- or over applied overhead.

Expert Solution

ekkarill92 answered 2 years ago

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