The company applies overhead cost to jobs using direct labor - hours. For this year, the company
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Question:
The company applies overhead cost to jobs using direct laborhours. For this year, the companys predetermined overhead rate of $ per direct laborhour was based on a cost formula that estimated $ of total manufacturing overhead for an estimated activity level of direct laborhours. The following transactions were recorded this year:
Raw materials were purchased on account, $
Raw materials $
Work in process $
Finished goods $
Raw materials used in production, $ All of of the raw materials were used as direct materials.
The following costs were accrued for employee services: direct labor, $; indirect labor, $; selling and administrative salaries, $
Incurred various selling and administrative expenses eg advertising, sales travel costs, and finished goods warehousing $
Incurred various manufacturing overhead costs eg depreciation, insurance, and utilities $
Manufacturing overhead cost was applied to production. The company actually worked direct laborhours on all jobs during the year.
Jobs costing $ to manufacture according to their job cost sheets were completed during the year.
Jobs were sold on account to customers during the year for a total of $ The jobs cost $ to manufacture according to their job cost sheets. What is the journal entry to record raw materials used in production?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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