Ravsten
Company uses a job-order costing system. On January 1,the beginning of the current year, the
company’s inventory balanceswere as follows:
The
company applies overhead cost to jobs on the basis ofmachine-hours. For the current year, the
company estimated that itwould work 37,100 machine-hours and incur $150,255 in manufacturingoverhead cost. The following transactions were recorded for theyear:
- Ravsten Company Uses A Job Order Costing System On January 1 The Beginning Of The Current Year The Company S Inventor 1 (117.47 KiB) Viewed 33 times
Ravsten
Company uses a job-order costing system. On January 1, the beginning of the current year, the
company's inventory balances were as follows: Raw materials Work in process Finished goods The
company applies overhead cost to jobs on the basis of machine-hours. For the current year, the
company estimated that it would work 37,100 machine-hours and incur $150,255 in manufacturing overhead cost. The following transactions were recorded for the year: $ 21,500 $12,200 $31,100 a. Raw materials were purchased on account: $222,000. b. Raw materials were requisitioned for use in production: $201,000 (85% direct and 15% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions Administrative salaries $168,800 $ 29, 200 $ 39,300 $ 84,400 d. Heat, power, and water costs were incurred in the factory: $46,950. e. Prepaid insurance expired during the year: $15,500 (80% relates to factory operations, and 20% relates to selling and administrative activities). f. Advertising costs were incurred, $55,500. g. Depreciation was recorded for the year: $66,600 (75% relates to factory operations, and 25% relates to selling and administrative activities). h. Manufacturing overhead cost was applied to production. The
company recorded 42,200 machine-hours for the year. i. Goods that cost $507,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totalled $751,200 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $500,300. Required: 1. Prepare journal entries to record the transactions given above. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet < 1 2 Raw materials were purchased on account: $222,000. Transaction a. Note: Enter debits before credits. 3 4 5 6 7 8 Record entry General Journal Clear entry ***** Debit 11 Credit View general journal
2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data fro to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an endin account. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Raw Materials Work in Process Finished Goods Beg. Bal. End. Bal. Beg. Bal. End. Bal. Manufacturing Overhead Cost of Goods Sold
Journal entry worksheet < A Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Selling and administrative expenses: RAVSTEN
COMPANY Income
Statement For the Year Ended December 31 Debit Credit 4. Prepare an Income
statement for the year. (Do not round Intermediate calculations and round your final answers to nearest whole dollar amount.) View general journal