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Job Cost Journal Entries and T Accounts Following are certain operating data for Redwood Manufacturing Company...

Job Cost Journal Entries and T Accounts

Following are certain operating data for Redwood Manufacturing Company for January 2016

Materials Inventory Work in Process Inventory Finished Goods Inventory
Beginning inventory $88,000 $110,000 $176,000
Ending inventory 154,000 132,000 123,200

Total sales were $4,400,000, on which the company earned a 40% gross profit. Redwood uses a predetermined manufacturing overhead rate of 110% of direct labor costs. Manufacturing overhead applied was $871,200. Exclusive of indirect material used, total manufacturing overhead incurred was $660,000 it was under-applied by $52,800.

Required

Compute the following items. (Set up T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead; fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.)

Cost of goods sold.

Cost of goods manufactured.

Direct labor incurred

Direct material used.

Indirect material used.

Total materials purchased.

Materials Inventory
Beg. bal.

88,000

Answer (d)
(f) Answer Answer (e)
End. bal. Answer
Work in Process Inventory
Beg. bal.

110,000

Answer (b)
(c) Answer
(d) Answer
Answer
End. bal. Answer
Manufacturing Overhead
Beg. bal.

0

Answer
Answer
(e) Answer
End. bal. Answer
Finished Goods Inventory
Beg. bal.

176,000

Answer (a)
(b) Answer
End. bal. Answer

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