Realize the following transactions:

Madison Co. purchased $112,000 of raw materials on account.

Actual manufacturing overhead costs include:

a. Repairs (a/p): $2,500

b. Utilities $875

c. Depredation on equipment: $1625

d. Rent (paid in advance): $2750

e. Insurance (prepaid policy): $1415

f. Indirect Material: $2,000

Factory Labor totaled $55,000, of which $3.000 is employer payroll taxes Madison Co. issued $55,310 of material to Process 1.

Assigned $18,000 of factory labors costs, of which $10,000 was assigned to Process 1 and the remainder was indirect.

Manufacturing overhead costs are applied at 74% of material issued (round to nearest dollar)

Balance in WIP - 1 is transferred to Process -2

$15,450 of material is issued to Process - 2

Assigned factory labor totaling $22,000, of which $12,000 was assigned to process 2 and remainder was indirect.

1. Manufacturing overhead costs are applied to Process 2 at a rate of 49.5% of material issued (to process 2) "Round to nearest dollar's "

2. Actual manufacturing overhead costs paid totaled $3,450; manufacturing overhead costs charged to accounts payable totaled $13.975.

3. Balance of Process 2 is transferred to Process 3.

4. $8,000 of material Is issued into process 3.

5. Assigned factory labor totaling $15,000, of which $5000 Was assigned to process 3 and the remainder was indirect.

6. Manufacturing overhead costs are applied to Process 3 at a rate of 75.25% of materials issued (to process 3).

7. Process 3 has been completed, which completes the manufacturing process.

8. The cost transferred to finished goods included 15,000 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 2500 units for $40,625 (customer paid 15% down and owes the remainder); they sold 850 units for $14,000 on account

9. Determine over or under-applied manufacturing overhead costs and prepare adjusting entry.

Answer rating: 100% (QA)

Out of this repairs is on account so credited to accounts payable Depreciation is credited to accumu... View the full answer