XYZ company manufactures office chairs. The company applies manufacturing overhead on the basis of direct-labor hours....
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XYZ company manufactures office chairs. The company applies manufacturing overhead on the basis of direct-labor hours. The company's budget for the current year: Estimated total manufacturing overhead: $63,000 Estimated total direct-labor hours: $ 3,000 The transactions during the year as follows: a. Raw materials were purchased on account for $18,000. b. $22,500 cost of direct materials were requisioned from the store room and used in production. $200 cost of indirect materials were requisioned from the store room and used in production. c. An analysis of employee time tickets revealed the following: (all paid in cash) Direct labor cost: $68,000 Indirect labor cost: $26.000 d. Depreciation of factory building and equipment amounted $24,000. e. Rent paid for the warehouse was $4.800. f. Utility costs for the factory incurred amounted $2,400. g. The insurance cost covering factory operations was $6,200. The insurance policy had been prepaid. h. The cost of wages for sales and administrative personnel paid amounted to $16,000. i. Depreciation on administrative office equipment and space $8,000. j. Other selling and administrative expenses paid amounted to $2,000. k. Actual direct-labors hours worked during the year amounted to 3,100 hours. The company applied manufacturing overhead to jobs. (Find the amount and record) 1. Finished goods that cost $101,800 to manufacture according to their job cost sheets were transferred to the warehouse. m. Sales made in cash during the year amounted to $125,750. n. The total cost to manufacture to those goods sold according to their job cost sheets was $82,500. The balances of selected accounts at the beginning of the year: Raw Material: $12,400 Work in Process: 15,200 Finished Goods: 36,000 2. Prepare Journal entries to record the transactions. 5. Prepare a Schedule of Cost of Goods Manufactured, Cost of Goods Sold and Income Statement for the year. XYZ company manufactures office chairs. The company applies manufacturing overhead on the basis of direct-labor hours. The company's budget for the current year: Estimated total manufacturing overhead: $63,000 Estimated total direct-labor hours: $ 3,000 The transactions during the year as follows: a. Raw materials were purchased on account for $18,000. b. $22,500 cost of direct materials were requisioned from the store room and used in production. $200 cost of indirect materials were requisioned from the store room and used in production. c. An analysis of employee time tickets revealed the following: (all paid in cash) Direct labor cost: $68,000 Indirect labor cost: $26.000 d. Depreciation of factory building and equipment amounted $24,000. e. Rent paid for the warehouse was $4.800. f. Utility costs for the factory incurred amounted $2,400. g. The insurance cost covering factory operations was $6,200. The insurance policy had been prepaid. h. The cost of wages for sales and administrative personnel paid amounted to $16,000. i. Depreciation on administrative office equipment and space $8,000. j. Other selling and administrative expenses paid amounted to $2,000. k. Actual direct-labors hours worked during the year amounted to 3,100 hours. The company applied manufacturing overhead to jobs. (Find the amount and record) 1. Finished goods that cost $101,800 to manufacture according to their job cost sheets were transferred to the warehouse. m. Sales made in cash during the year amounted to $125,750. n. The total cost to manufacture to those goods sold according to their job cost sheets was $82,500. The balances of selected accounts at the beginning of the year: Raw Material: $12,400 Work in Process: 15,200 Finished Goods: 36,000 2. Prepare Journal entries to record the transactions. 5. Prepare a Schedule of Cost of Goods Manufactured, Cost of Goods Sold and Income Statement for the year.
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