The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system: 1. Direct materials purchases totaled $583,000. Bagby Corp tracks its direct materials separately from its indirect materials. Purchases were made on account. 2. $132,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect materials. 3. $569,000 of direct materials were used in production. 4. The direct labor payroll was $791,000 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $690,000. 6. Bagby applies overhead based on a predetermined overhead rate of $21 per machine hour. The company used 51,000 machine hours during the year. 7. During the year, Bagby transferred goods costing $2,410,000 into the Finished Goods Inventory account. 8. Bagby sold products with a manufacturing cost of $2,398,000 to customers during the year.

The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system: 1. Direct materials purchases totaled $583,000. Bagby Corp tracks its direct materials separately from its indirect materials. Purchases were made on account. 2. $132,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect materials. 3. $569,000 of direct materials were used in production. 4. The direct labor payroll was $791,000 (credit Wages Payable). 5. Other manufacturing overhead costs incurred during the year totaled $690,000. 6. Bagby applies overhead based on a predetermined overhead rate of $21 per machine hour. The company used 51,000 machine hours during the year. 7. During the year, Bagby transferred goods costing $2,410,000 into the Finished Goods Inventory account. 8. Bagby sold products with a manufacturing cost of $2,398,000 to customers during the year.

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Description: The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system:1. Direct materials purchases totaled $583,000. Bagby Corp tracks its direct materials separately from its indirect materials.Purchases wer

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...

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