The following events occurred over the course of a year at Bagby Corp., which uses a...

The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system:

1. Direct materials purchases totaled $460,000.

2. $230,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect materials.

3. $415,000 of direct materials were used in production.

4. The direct labor payroll was $940,000 (credit Wages Payable).

5. Other manufacturing overhead costs incurred during the year totaled $540,000.

6. Bagby applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,000 machine hours during the year.

7. During the year, Bagby transferred goods costing $2,100,000 into the Finished Goods Inventory account.

8. Bagby sold products with a manufacturing cost of $2,050,000 to customers during the year.

Required

a. Prepare journal entries to record these events.

b. Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances: Account Balance Direct Materials Inventory $20,000 Work in Process Inventory $12,000 Finished Goods Inventory $35,000

c. Was overhead under- or overapplied for the year? By how much?

Expert Solution

ekkarill92 answered 10 months ago

She Shed. Corp was organized in 2017. These business events occurred during the year, affecting intangible...

She Shed. Corp was organized in 2017. These business events occurred during the year, affecting intangible assets. 1. Purchased a license for $20,000 on July 1, 2017. The license gives She Shed exclusive rights to sell its sheds in the tri-state region and will expire on July 1, 2025. 2. Purchased a patent on January 2, 2018, for $40,000. It is estimated to have a 5-year life. 3. Costs incurred to develop an exclusive Internet connection process as of June...

Feng Disc Golf Course was opened on March 1. The following selected events and transactions occurred...

Feng Disc Golf Course was opened on March 1. The following selected events and transactions occurred during March (amounts in thousands). Mar. 1 Lee Feng invested￥20,000 cash in the business in exchange for ordinary shares. 3 Purchased Rainbow Golf Land for￥15,000 cash. The price consists of land ￥12,000, building ￥2,000, and equipment ￥1,000. (Make one compound entry.) 5 Paid advertising expenses of ￥900 6 Paid cash ￥600 for a one-year insurance policy. 10 Purchased golf discs and other equipment...

The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities

The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column(s). (More than one column may be used.)

The following events occurred in the newly formed company, Armidale Ltd, which was registered on 31...

The following events occurred in the newly formed company, Armidale Ltd, which was registered on 31 January 2019. 2019 Feb 1 Armidale Ltd issued a prospectus calling for applications for 600000 ordinary shares to be issued at a price of $3, payable $2 on the application, $ 50c on an allotment and the balance as and when required. Mar. 1 Applications closed with the issue oversubscribed by $1800000. The directors allotted shares on the basis of 1 share for every...

The following transactions and events that occurred in Jeter City during calendar year 2019. 1. The...

The following transactions and events that occurred in Jeter City during calendar year 2019. 1. The city council adopted the following budget: Estimated revenues and other sources: Property taxes $2,500,000 Sales taxes 1,400,000 Use of fund balance 50,000 Total $3,950,000 Appropriations: Streets and parkways: Personal services $ 780,000 Equipment 95,000 Operating supplies 125,000 All other appropriations 2,950,000 Total $3,950,000 2. The Department of Streets and Parkways (S&P) took bids to purchase several items of equipment. The lowest bid came in...

The following events occurred at Jack Company during its first year of business: a. To establish...

The following events occurred at Jack Company during its first year of business: a. To establish the company, the two owners contributed a total of $60,000 in exchange for common stock. b. Grooming service revenue for the first year amounted to $175,000, of which $50,000 was on account. c. Customers owe $15,000 at the end of the year from the services provided on account. d. At the beginning of the year, a storage building was rented. The company was required...

The following events occurred last year at Dorder Corporation: Purchase of plant and equipment $20,000 Sale...

The following events occurred last year at Dorder Corporation: Purchase of plant and equipment $20,000 Sale of long-term investment $8,000 Dividends received on long-term investments $5,000 Paid off bonds payable $11,000 Depreciation expense $6,500 Based on the above information, the cash provided (used) by investing activities for the year on the statement of cash flows would net to: $(11,000) $(12,000) $(24,500) $(6,500) Last year Burch Corporation's cash account decreased by $16,000. Net cash provided by investing activities was $7,100. Net...

Each of the following events occurred after year-end and before the financial statements were issued:

The following transactions occurred during the first year of operations for Cougar Corp. for each transaction...

The following transactions occurred during the first year of operations for Cougar Corp. for each transaction prepare the year-end adjusting journal entry. Note: these ARE adjusting entries. a. Cougar Corp. purchased $4,300 in supplies during the year. A count at the end of the year showed that $650 of the supplies are still on hand. b. Cougar Corp. needs to record depreciation for its Vehicles. The depreciation amount is $4,100. c. Cougar Corp. owes its employees $5,700 for work performed...

Days Ltd's financial year ended on 30 June 2020. The following events occurred between the end...

Days Ltd's financial year ended on 30 June 2020. The following events occurred between the end of the reporting period and the date the directors of Edwards Ltd expect to authorise the financial statements for issue: On 3 July 2020, directors proposed a final dividend of $120,000. On 15 July 2020, Days Ltd took delivery of building materials (inventory). Building materials were purchased from a Chinese manufacturer. Building materials were in transit at the end of the reporting period. An...

Question