Rose Corporation had the following activities during its most recent month of operations: Factory Overhead was applied
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Question:
Rose Corporation had the following activities during its most recent month of operations:
Factory Overhead was applied at 90% of Direct Labour Cost.
a. Purchase raw materials on account for $175,490b. Materials requisitions for the month show that the following materials were used on jobs and indirectly:
Job 480$21,750
Job 490 12,000
Job 500 8,790
Job 510 13,680
Indirect Materials 3,750
c. Paid Factory Wages in the amount of $95,849d. Labour time tickets for the month provided the following information:Job 48029,000
Job 49025,500
Job 50015,450
Job 51013,149
Indirect labour12,750
e. Incurred factory utilities costs of $34,000; paid in cashf. Applied overhead to all jobs worked on, during the month (Jobs 480, 490, 500 and 510).g. Overhead costs incurred for the month totaled $27,680 (credit Other Accounts)h. Jobs 480, 490 and 500 were completed and transferred to finished goods.i. Job 480 was sold for $150,000 to a customer on credit.Required:
a. Prepare journal entries to record the above transactions.b. Prepare job order cost sheet for each job worked on during the month.Calculate the balance in the following accounts at the end of the month: Goods in Process, Finished Goods and Cost of Good.
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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