Question

Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materials. Until the end of April, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations.

1. Raw material purchased on account, $326,400.
2. Direct material issued to Job #4263 cost $262,080; indirect material issued for that job cost $19,936. Direct material costing $2,992 was issued to start production of Job #4264.
3. Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct labor employees were paid $24 per hour.
4. Other actual factory overhead costs incurred for the month totaled $109,920. This overhead consisted of $28,800 of supervisory salaries, $34,400 of depreciation charges, $11,520 of insurance, $20,000 of indirect labor, and $15,200 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued.
5. Overhead is applied to production at the rate of $28.80 per direct labor hour.

Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $6,880 and $18,240. Of the beginning WIP balance, $1,280 was related to Job #4263. Job #4263 was completed during April.

a. Prepare journal entries for Transactions 1–5.

Note: List any multiple debits or any multiple credits in alphabetical order by account name.

	Account	Debit	Credit
1	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	To record raw materials purchased on account
2	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	To record the direct materials issued
3	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	To record the labor costs
4	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	To record actual overhead costs
5	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	AnswerAccounts PayableAccumulated DepreciationCashDepreciation ExpenseFinished Goods InventoryManufacturing Overhead ControlRaw Material InventoryWages PayableWork in Process Inventory for Job 4263Work in Process Inventory for Job 4264	Answer	Answer
	To record the application of OH

b. Determine the balance in Raw Material Inventory at the end of the month. $Answer

c. Determine the balance in Work in Process Inventory at the end of the month. $Answer

d. Determine the cost of the goods manufactured during April. $Answer

e. If completed goods consist of 10,000 similar units, what was the cost per unit?
Note: Round unit costs to two decimal places (i.e. round $4.355 to $4.36).
$Answer

f. What is the amount of underapplied or overapplied overhead at the end of April?

Answer 1