southworth company uses a job order costing system and applies to manufacture overhe 350073

Aug 29, 2021 | Uncategorized

Southworth Company uses a job order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $217,000 of manufacturing overhead for an estimated allocation base of $155,000 direct material dollars.
The following transactions took place during the year (all purchases and services were acquired on account):
a. Raw materials purchased, $149,000.
b. Raw materials requisitioned for use in production (all direct materials), $148,000.
c. Utility bills incurred in the factory, $22,000.
d. Costs for salaries and wages were incurred as follows:
Direct labor $ 220,000
Indirect labor $ 67,400
Selling and administrative salaries $ 142,000
e. Maintenance costs incurred in the factory, $19,000.
f. Advertising costs incurred, $124,000.
g. Depreciation recorded for the year, $40,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets).
h. Rental cost incurred on buildings, $83,000 (90% of the space is occupied by the factory, and 10% is occupied by sales and administration).
i. Miscellaneous selling and administrative costs incurred, $12,000.
j. Manufacturing overhead cost was applied to jobs, $ ?
k. Cost of goods manufactured for the year, $553,000.
l. Sales for the year (all on account) totaled $1,400,000. These goods cost $510,000 according to their job cost sheets.
The balances in the inventory accounts at the beginning of the year were as follows:
Raw Materials $ 17,000
Work in Process $ 22,000
Finished Goods $ 32,000
Required:
1. Prepare journal entries to record the above data.
General Journal Debit Credit
a. (Click to select)Advertising expenseRaw materialsWork in processManufacturing overheadSalaries and wages payableAccounts payableSelling and administrative salariesMiscellaneous expense
(Click to select)Miscellaneous expenseRaw materialsWork in processSalaries and wages payableManufacturing overheadAdvertising expenseAccounts payableSelling and administrative salaries
b. (Click to select)Accounts payableWork in processMiscellaneous expenseManufacturing overheadAdvertising expenseSalaries and wages payableSelling and administrative salariesRaw materials
(Click to select)Raw materialsWork in processManufacturing overheadMiscellaneous expenseSalaries and wages payableSelling and administrative salariesAdvertising expenseAccounts payable
c. (Click to select)Accounts payableManufacturing overheadSelling and administrative salariesSalaries and wages payableMiscellaneous expenseWork in processRaw materialsAdvertising expense
(Click to select)Service expensesManufacturing overheadSalaries and wages payableAdvertising expenseRaw materialsWork in processAccounts payableMiscellaneous expense
d. (Click to select)Manufacturing overheadAdvertising expenseWork in processMiscellaneous expenseAccounts payableRent expenseSalaries and wages payableSelling and administrative salaries
(Click to select)Advertising expenseMiscellaneous expenseRent expenseSelling and administrative salariesManufacturing overheadWork in processSalaries and wages payableAccounts payable
(Click to select)Work in processMiscellaneous expenseManufacturing overheadSalaries and wages payableAdvertising expenseSelling and administrative salariesRent expenseAccounts payable
(Click to select)Miscellaneous expenseSalaries and wages payableAdvertising expenseWork in processSelling and administrative salariesRent expenseManufacturing overheadAccounts payable
e. (Click to select)Selling and administrative salariesAccounts payableDepreciation expenseSalaries and wages payableAccumulated depreciationMiscellaneous expenseManufacturing overheadAdvertising expense
(Click to select)Selling and administrative salariesMiscellaneous expenseSalaries and wages payableDepreciation expenseAccounts payableManufacturing overheadAccumulated depreciationAdvertising expense
f. (Click to select)Accounts payableDepreciation expenseAccumulated depreciationMiscellaneous expenseAdvertising expenseSelling and administrative salariesSalaries and wages payableManufacturing overhead
(Click to select)Accounts payableSelling and administrative salariesDepreciation expenseAdvertising expenseMiscellaneous expenseAccumulated depreciationSalaries and wages payableManufacturing overhead
g. (Click to select)Accumulated depreciationRent expenseDepreciation expenseMiscellaneous expenseSelling and administrative salariesManufacturing overheadAccounts payableAdvertising expense
(Click to select)Manufacturing overheadDepreciation expenseAccounts payableAdvertising expenseSelling and administrative salariesMiscellaneous expenseAccumulated depreciationRent expense
(Click to select)Depreciation expenseMiscellaneous expenseSelling and administrative salariesAdvertising expenseManufacturing overheadRent expenseAccounts payableAccumulated depreciation
h. (Click to select)Miscellaneous expenseDepreciation expenseAccounts payableSelling and administrative salariesManufacturing overheadRent expenseAccumulated depreciationAdvertising expense
(Click to select)Depreciation expenseAccumulated depreciationAccounts payableManufacturing overheadRent expenseAdvertising expenseMiscellaneous expenseSelling and administrative salaries
(Click to select)Rent expenseAdvertising expenseSelling and administrative salariesMiscellaneous expenseManufacturing overheadAccumulated depreciationDepreciation expenseAccounts payable
i. (Click to select)Selling and administrative salariesAdvertising expenseRent expenseWork in processManufacturing overheadSalaries and wages payableMiscellaneous expenseAccounts payable
(Click to select)Selling and administrative salariesAdvertising expenseManufacturing overheadRent expenseAccounts payableWork in processMiscellaneous expenseSalaries and wages payable
j. (Click to select)Work in processSalaries and wages payableManufacturing overheadMiscellaneous expenseFinished goodsRent expenseAdvertising expenseSelling and administrative salaries
(Click to select)Salaries and wages payableAccounts payableAdvertising expenseSelling and administrative salariesRent expenseWork in processManufacturing overheadMiscellaneous expense
k. (Click to select)Selling and administrative salariesRaw materialsCost of goods soldAccounts payableSalesAccounts receivableWork in processFinished goods
(Click to select)Accounts receivableSalesSelling and administrative salariesCost of goods soldAccounts payableRaw materialsWork in processFinished goods
l (Click to select)Accounts receivableRaw materialsFinished goodsSelling and administrative salariesAccounts payableWork in processSalaries and wages payableSales
(Click to select)Cost of goods soldAccounts receivableSalesAccounts payableSelling and administrative salariesRaw materialsSalaries and wages payableWork in process
(Click to select)SalesSalaries and wages payableCost of goods soldSelling and administrative salariesMiscellaneous expenseFinished goodsRaw materialsAccounts payable
(Click to select)Cost of goods soldAccounts payableSalaries and wages payableFinished goodsRaw materialsMiscellaneous expenseSelling and administrative salariesAccounts receivable
2. Post your entries to T accounts. (Don’t forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account. (Record the transactions in the given order.)
Accounts Receivable
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
Raw Materials
Bal. (Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
(Click to select)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)
Bal.

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