Docks Transport assembles prestige manufactured homes. Its jobcosting system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $21 per machine-hour in 2020). The following data (in millions) show operation costs for 2020:

Required

1. Identify the components of the overview diagram of Docks Transport’s job-costing system.
2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control?
3. Show the journal entry for adjusting for under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts.
4. How did Docks Transport perform in 2020?

Transcribed Image Text:

Materials Control, beginning balance, January 1, 2020 Work-in-Process Control, beginning balance, January 1, 2020 Finished Goods Control, beginning balance, January 1, 2020 Materials and supplies purchased on credit Direct materials used Indirect materials (supplies) issued to various production departments Direct manufacturing labor Indirect manufacturing labor incurred by various production departments Depreciation on plant and manufacturing equipment Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) Manufacturing overhead allocated, 4,000,000 actual machine-hours Cost of goods manufactured Revenues Cost of goods sold $13 4 154 147 19 90 32 26 14 ? 295 400 293