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Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,359,000, and management budgeted 90,000 direct labor hours. Mooresville had no Materials, Work-in- Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 5,600 square feet of oak on account at $26 per square foot. b. Purchased 110 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,920 square feet of oak and 37 gallons of glue for production. d. Incurred and paid payroll costs of $200,500. Of this amount, $52,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,250 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,800. The premium had been paid in March. g. Incurred $8,890 depreciation on manufacturing equipment for August. h. Recorded $2,550 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,770. j. Incurred and paid other factory overhead costs, $14,100. k. Incurred miscellaneous selling and administrative expenses, $13,700. I. Applied factory overhead to production on the basis of direct labor hours. n. Produced completed goods costing $149,000 during the month.

Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,359,000, and management budgeted 90,000 direct labor hours. Mooresville had no Materials, Work-in- Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 5,600 square feet of oak on account at $26 per square foot. b. Purchased 110 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,920 square feet of oak and 37 gallons of glue for production. d. Incurred and paid payroll costs of $200,500. Of this amount, $52,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,250 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,800. The premium had been paid in March. g. Incurred $8,890 depreciation on manufacturing equipment for August. h. Recorded $2,550 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,770. j. Incurred and paid other factory overhead costs, $14,100. k. Incurred miscellaneous selling and administrative expenses, $13,700. I. Applied factory overhead to production on the basis of direct labor hours. n. Produced completed goods costing $149,000 during the month.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business
Section: Chapter Questions
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4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August.
Transcribed Image Text:4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August.
Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,359,000, and management budgeted 90,000 direct labor hours. Mooresville had no Materials, Work-in- Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 5,600 square feet of oak on account at $26 per square foot. b. Purchased 110 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,920 square feet of oak and 37 gallons of glue for production. d. Incurred and paid payroll costs of $200,500. Of this amount, $52,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,250 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,800. The premium had been paid in March. g. Incurred $8,890 depreciation on manufacturing equipment for August. h. Recorded $2,550 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,770. j. Incurred and paid other factory overhead costs, $14,100. k. Incurred miscellaneous selling and administrative expenses, $13,700. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $149,000 during the month. n. Sales on account in August were $138,600. The Cost of Goods Sold was $115,000.
Transcribed Image Text:Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,359,000, and management budgeted 90,000 direct labor hours. Mooresville had no Materials, Work-in- Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: a. Purchased 5,600 square feet of oak on account at $26 per square foot. b. Purchased 110 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 3,920 square feet of oak and 37 gallons of glue for production. d. Incurred and paid payroll costs of $200,500. Of this amount, $52,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $16,250 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,800. The premium had been paid in March. g. Incurred $8,890 depreciation on manufacturing equipment for August. h. Recorded $2,550 depreciation on an administrative asset. i. Paid advertising expenses in cash, $5,770. j. Incurred and paid other factory overhead costs, $14,100. k. Incurred miscellaneous selling and administrative expenses, $13,700. I. Applied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $149,000 during the month. n. Sales on account in August were $138,600. The Cost of Goods Sold was $115,000.
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