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Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance $ 14,05e $ 22,050 $ 27,ese s 9,8se $ 62,0se $ 77,0se Ending Balance Raw naterials Mork in process Finished Goods • 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 33,050 machine-hours and incur $234,655 in manufacturing overhead cost. The following transactions were recorded for the year: Row materials were purchased, $315,050. • Raw materials were requisitioned for use in production, $307.050 ($280,950 direct and $26,100 indirect). • The following employee costs were incurred: direct labor, $377,050; indirect labor, $96,050; and administrative salaries, $172.050 • Selling costs, $147,050. • Factory utility costs, $10,050. Depreciation for the year was $130.000 of which $120.100 is related to factory operations and S9.900 is related to selling. general, and administrative activities. • Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,010 machine-hours. • Sales for the year totaled $1,255,000. Required: a. Prepare a schedule of cost of goods manufactured.

Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance $ 14,05e $ 22,050 $ 27,ese s 9,8se $ 62,0se $ 77,0se Ending Balance Raw naterials Mork in process Finished Goods • 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 33,050 machine-hours and incur $234,655 in manufacturing overhead cost. The following transactions were recorded for the year: Row materials were purchased, $315,050. • Raw materials were requisitioned for use in production, $307.050 ($280,950 direct and $26,100 indirect). • The following employee costs were incurred: direct labor, $377,050; indirect labor, $96,050; and administrative salaries, $172.050 • Selling costs, $147,050. • Factory utility costs, $10,050. Depreciation for the year was $130.000 of which $120.100 is related to factory operations and S9.900 is related to selling. general, and administrative activities. • Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,010 machine-hours. • Sales for the year totaled $1,255,000. Required: a. Prepare a schedule of cost of goods manufactured.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 1E: Yellowstone Fabricators uses a process cost system and applies actual factory overhead to work in...
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please help with part a. Thank you

Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance 14,850 $ 22,050 27,05e 62,850 $ 77,850 Ending Balance Raw materials Work in process Finished Goods $ 9,050 The company applies overhead to jobs using a predetermined overheod rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,050 machine-hours and incur $234,655 in manufacturing overhead cost. The following transsctions were recorded for the year: • Row materials were purchased, $315,050. • Row materials were requisitioned for use in production, $307,050 ($280,950 direct and $26,100 indirect). The following employee costs were incurred: direct labor, $377,050; indirect labor, $96,050; and administrative salaries, $172,050. • Selling costs, $147,050. Foctory utility costs, $10,050. Deprecistion for the year was $130,000 of which $120,100 is relsted to factory operstions and $9,900 is related to selling. general, and administrative activities. • Manufacturing overhead wes applied to jobs. The octual level of sctivity for the year wes 34,010 machine-hours. • Sales for the year totaled $1,255,000. Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhesd underapplied or overspplied? By how much? c. Prepare on income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the table below. Required A Required B Required C Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Coat of Goods Manufactured Manufacturing oaverhead cost 241,471 Direct materials: Beginning materials inventory 14,050 Add: Purchases of raw materials 315,050 Total raw materials available 329,100 Deduct: Ending raw materials inventory 22,050 Total Raw materials used in production 307,050 Deduct: Indirect materials included in manufacturing overhead 26, 100 Direct materials used in production 280.950 Direct labor 377,050 Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing costs to account for 241,471 899,471 1,140,942 Add: Beginning work in process inventory 27,050 Cast af goods manufactured S 1,113,892 < Required A Required B >
Transcribed Image Text:Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance 14,850 $ 22,050 27,05e 62,850 $ 77,850 Ending Balance Raw materials Work in process Finished Goods $ 9,050 The company applies overhead to jobs using a predetermined overheod rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,050 machine-hours and incur $234,655 in manufacturing overhead cost. The following transsctions were recorded for the year: • Row materials were purchased, $315,050. • Row materials were requisitioned for use in production, $307,050 ($280,950 direct and $26,100 indirect). The following employee costs were incurred: direct labor, $377,050; indirect labor, $96,050; and administrative salaries, $172,050. • Selling costs, $147,050. Foctory utility costs, $10,050. Deprecistion for the year was $130,000 of which $120,100 is relsted to factory operstions and $9,900 is related to selling. general, and administrative activities. • Manufacturing overhead wes applied to jobs. The octual level of sctivity for the year wes 34,010 machine-hours. • Sales for the year totaled $1,255,000. Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhesd underapplied or overspplied? By how much? c. Prepare on income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the table below. Required A Required B Required C Prepare a schedule of cost of goods manufactured. Baab Corporation Schedule of Coat of Goods Manufactured Manufacturing oaverhead cost 241,471 Direct materials: Beginning materials inventory 14,050 Add: Purchases of raw materials 315,050 Total raw materials available 329,100 Deduct: Ending raw materials inventory 22,050 Total Raw materials used in production 307,050 Deduct: Indirect materials included in manufacturing overhead 26, 100 Direct materials used in production 280.950 Direct labor 377,050 Manufacturing overhead applied to work in process Total manufacturing costs added to production Total manufacturing costs to account for 241,471 899,471 1,140,942 Add: Beginning work in process inventory 27,050 Cast af goods manufactured S 1,113,892 < Required A Required B >
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