Coda Industries uses a job order cost system. On November 1, the company had the following balance in the accounts:

The following transactions occurred during November:
(a) Purchased materials on account at a cost of $270,500.
(b) Requisitioned materials at a cost of $195,500, only $180,000 of which was traceable to specific jobs.
(c) Recorded factory labor of $267,000, 80 percent of which was direct.
(d) Incurred other costs:
Selling expenses ...... $ 65,300
Factory utilities ...... 68,300
Administrative expenses ... 92,500
Factory rent ....... 125,000
Factory depreciation .... 64,800
(e) Applied overhead during the month totaling $290,000.
(f) Completed jobs costing $607,250.
(g) Sold jobs costing $557,700.
(h) Recorded sales revenue of $850,000.

Required:
1. Post the November transactions to the T-accounts.
2. Compute the balance in the accounts at the end of November.
3. Compute over- or underapplied manufacturing overhead. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?
4. Prepare Coda’s cost of goods manufactured report for November.
5. Prepare Coda’s November income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturingoverhead.

Transcribed Image Text:

Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Bal. 62,000 Bal. 22,900 Bal. 130,000 Manufacturing Overhead Cost of Goods Sold Sales Revenue Nonmanufacturing Expenses