Malibu Boats Inc. uses a job order cost accounting system and keeps perpetual inventory records. The...

Malibu Boats Inc. uses a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

Purchased raw materials on account, $230,000.

2. An analysis of the requisitions shows the following: Direct materials requisitioned during the month:

Job 101 $26,000

Job 102 19,000

Job 103 31,000

$76,000

Factory labor costs incurred were $85,000 of which $71,000 pertained to factory wages payable and $14,000 pertained to employer payroll taxes payable.

4. An analysis of the time tickets indicated the following: Direct labor incurred and charged to jobs during the month was:

Job 101 $31,000

Job 102 27,000

Job 103 24,000

$82,000

Incurred manufacturing overhead costs as follows: indirect labor $12,000, indirect materials $7,000, and depreciation $9,000. Also, incurred $68,000 of manufacturing overhead costs on account.
Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 101% of direct labor costs. show computations
Job 101 and Job 103 were completed during the month. (Note: show your work in part b. below.)
Job 101 was sold on account for $115,000.

Instructions:

Prepare journal entries to record the above transactions.
Compute the cost of Job 101, Job 102 and Job 103.
Compute the balance in the Work-in-Process account at the end of the month.
Compute the amount of over/under applied overhead.

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Expert Solution

jeff jeffy answered 1 year ago

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