The company paid for the development of a new website to sell its product at $ 1
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The company paid for the development of a new website to sell its product at $150,000Raw materials costing $222,00 were purchased on account.During the month $130,000 of materials were requisitioned for use in production, of which $120,000 worth of fabric was requisitioned for use in the production of the masks and directly traced to particular jobs in the factory. The remainder was indirect materials including clean fluid for the machines and hand sanitizer for employees.Employee costs were incurred:mask makers (direct factory labor)− $77,000 at an average of $22 per hour (for 3,500 direct labor hours)supervisors, plant security, plant maintenance and plant managers (indirect factory labor), $15,000SGA − selling, general and administrative salaries, $50,000Utility costs and property taxes of $30,000 were incurred (accrued) for the factory and $44,000 in costs were incurred for the headquarters building.Depreciation for the period was $100,000 of which $14,000 is related to the factory building and equipment while the remaining and $86,000 is related to the headquarters office building.Manufacturing overhead was applied to jobs.Several batches of masks costing $450,000 based upon the completed job cost sheets were completed and moved to the delivery area.Face masks with a cost of $800,000 were sold on account for 200% of cost.The over or underapplied overhead journal entry must be made. (Be sure to indicate if overhead is over or underapplied.)Use the information above to answer the following questions in good form. When preparing journal entries, it may be difficult to get them to line up properly...therefore, indicate which is your debit and which is your credit.For exampleDR: Tax expense XXX CR: Cash XXXX
Related Book For
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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