ABC, Corp. is a manufacturing firm that uses job-order costing. The company applies overhead to jobs...

ABC, Corp. is a manufacturing firm that uses job-order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 50,000 machine-hours and incur $450,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, $325,000. b. Raw materials were requisitioned for use in production, $175,000 ($100,000 direct and $75,000 indirect). c. The following employee costs were incurred: direct labor, $215,000; indirect labor, $40,000; and accountant salaries, $85,000. d. Advertising costs, $225,000. e. Factory rent costs, $25,000. f. Depreciation for the year was $150,000 of which $80,000 is related to factory operations and $70,000 is related to selling, general, and administrative activities. g. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 25,000 machine-hours. h. The cost of goods manufactured for the year was $490,000. i. Sales for the year totaled $980,000 and the costs on the job cost sheets of the goods that were sold totaled $350,000. j. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold. Required: Prepare the appropriate journal entry for each of the items above (a. through j.). You can assume that all transactions with employees, customers, and suppliers were conducted in cash.

Expert Solution

S.no	Particulars	Debit	Credit
a	Raw Material	$3,25,000.00
	Cash		$3,25,000.00
	(To record raw material purchse)

b	WIP	$1,00,000.00
	Manufacturing OH	$75,000.00
	Raw Material		$1,75,000.00
	(To record recquisition of RM)

c	WIP	$2,15,000.00
	Manufacturing OH	$40,000.00
	Administrative Expenses	$85,000.00
	Cash		$3,40,000.00
	(To record employee expenses)

d	Selling Expenses	$2,25,000.00
	Cash		$2,25,000.00
	(For advertising charges recorded)

e	Manufacturing OH	$25,000.00
	Cash		$25,000.00
	(To record factory expenses)

f	Manufacturing OH	$80,000.00
	Administrative Expenses	$70,000.00
	Acc. Depreciation		$1,50,000.00
	(To record depreciation)

g	WIP	$2,25,000.00
	Manufacturing OH		$2,25,000.00
	(To record application of mfg oh to jobs)

h	Finished Goods	$4,90,000.00
	WIP		$4,90,000.00
	(To record good manufactured)

i	Cash	$9,80,000.00
	Sales		$9,80,000.00
	(To record the cash sales)

j	COGS	$3,50,000.00
	Finished Goods		$3,50,000.00
	(To record COGS)

k	Manufacturing OH	$5,000.00		b+c+e+f-g =	Amounts of mfg oh
	COGS		$5,000.00

ekkarill92 answered 8 months ago

The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on...

The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: Manufacturing overhead cost: $200,000 Direct materials cost: $160,000 The following transactions took place during the year (all purchases and services were acquired on account): a.) Raw materials purchased: $86,000....

NH Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a...

NH Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. In June, Job #300 was completed. Materials costs on the job totaled $1,500 and labor costs totaled $2,400 at $6 per hour. At the end of the year, it was determined that the company worked 15,000 direct labor-hours for...

2. Allenton Company is a manufacturing firm that uses job-order costing. The company applies overhead to...

2. Allenton Company is a manufacturing firm that uses job-order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 31,000 machine-hours and incur $248,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, $412,419. b. Raw materials were requisitioned for use in production, $409,000 ($388,000 direct and $21,000 indirect). c. The following employee...

1. Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a...

1. Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. Manufacturing overhead and direct labor hours were estimated at $66,000 and 22,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,923 and labor costs totaled $2,325 at $7.50 per hour (310 hours worked on this job). At the end of the year, it was determined that the company worked 23,975...

ABC Company uses a job-order costing system and applies overhead costs to jobs using a plant-wide...

ABC Company uses a job-order costing system and applies overhead costs to jobs using a plant-wide rate of 60% of direct materials cost. ABC Company had four jobs in process at June 1 (Jobs #1, #2, #3, and #4). Information related to the four jobs appears below: Job #1 Job #2 beginning work in process ..... $2,500 $1,900 COSTS ADDED DURING JUNE direct materials .............. $ 800 $ 600 direct labor .................. $ 700 $1,780 Job #3 Job #4 beginning...

ABC uses job-order costing. It applies overhead cost to jobs on the basis of direct labor-hours....

ABC uses job-order costing. It applies overhead cost to jobs on the basis of direct labor-hours. The following transactions took place during the year: a) $300,000 of raw materials were purchased on account b) Raw materials were issued into production: $90,000 direct materials and $40,000 indirect materials c) Labor costs incurred: $40,000 direct, $130,000 indirect, sales commissions $50,000, administrative salaries $100,000 d) Utility costs for the factory were $60,000 e) Depreciation recorded was $300,000 (70% related to factory; 30% related...

hardwood company uses a job order costing system that applies overhead cost to jobs on the...

hardwood company uses a job order costing system that applies overhead cost to jobs on the basis of machine hours. The companys predetermined overhead rate of $2.50 Per machine hour was based on the cost formula that estimates $237,500 of total manufacturing overhead for an estimated activity level of 95,000 machine hours. 1. Manufacturing Overhead Maintenance 36,000 ??? (a) Indirect Materials 9,500 Indirect Labor 75,000 Utilities 44,000 Insurance 8,500 Depreciation 56,000 Balance: ??? Work in Process: Direct Materials 860,000 Direct...

Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on...

Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 25,000 machine-hours and incur $118,750 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $244,000 (70% direct and 30% indirect). b. The following costs were incurred for employee services: Direct Labor $170,000 Indirect Labor $28,000 Sales commisions $20,000...

Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the...

Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,000 machine-hours and incur $159,100 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $191,000 (75% direct and 25% indirect). b. The following costs were incurred for employee services: Direct labor $ 161,000 Indirect labor $ 19,000 Sales commissions $...

Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual jobs by using...

Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In the Fabrication Department, overhead is applied on the basis of machine-hours, and in the Installation Department, it is applied on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates. Fabrication Installation Direct labor $ 132,000 $ 300,000 Manufacturing overhead $ 600,000...

Question