1. Raw materials used to produce $100,000 (all direct materials).2. Salaries costs incurred on account: direct labour $200,000 (40,000 hours); indirect labour $60,000; selling and administrative $130,000.3. Utilities cost incurred for the factory $40,000 on credit.4. Advertising cost incurred for the year $50,000 on credit.5. Depreciation recorded for the year $30,000, of which 60% related to the factory and 40% related to selling and administrative activities.6. Other factory overhead costs incurred for the year $40,000 on account.7. Prepaid rent of $50,000 expired during the year; all of this is related to the factory.8. The company applied overhead on the basis of direct labour-hours at $6.50 per hour.9. The cost of goods manufactured for the year was $600,000.10. Goods that cost $600,000 according to the job cost sheets were sold on account, cost is two-third of the sales. a) Prepare journal entries for the company. Write your entries with the numbers 1-10. b) Is overhead underapplied or overapplied for the year? Prepare the closing entry
1. Raw materials used to produce $100,000 (all direct materials).
2. Salaries costs incurred on account: direct labour $200,000 (40,000 hours); indirect labour $60,000; selling and administrative $130,000.
3. Utilities cost incurred for the factory $40,000 on credit.
4. Advertising cost incurred for the year $50,000 on credit.
5.
6. Other
7. Prepaid rent of $50,000 expired during the year; all of this is related to the factory.
8. The company applied overhead on the basis of direct labour-hours at $6.50 per hour.
9. The cost of goods manufactured for the year was $600,000.
10. Goods that cost $600,000 according to the
a) Prepare
b) Is overhead underapplied or overapplied for the year? Prepare the closing entry
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