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In April $20$X$1,$ Metal Trailers Co$.$ had the following cost data:

COST DATA

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a$.$ Raw materials costing $$76,000$ were purchased.

b$.$ Raw materials costing $$73,400$ were used: direct materials, $$69,000$; indirect materials $$4,400.$

c$.$ Factory wages of $$52,000$ were incurred: direct labor, $$44,000$; indirect labor, $$8,000.$ Social security tax deductions were $$3,224$; Medicare tax deductions were $$754$; federal income tax deductions were $$7,800.$

d$.$ Other overhead costs of $$27,400$ were incurred. $($Credit Accounts Payable.$)$

e$.$ Estimated manufacturing overhead costs were applied to jobs in production at the rate of $80$ percent of direct labor costs.

f$.$ Finished goods costing $$144,000$ were transferred from production to the warehouse.

g$.$ The cost of goods sold was $$114,000.$

h$.$ Sales on account for the month were $$296,500.$

Required:

Prepare general journal entries to record each item of cost data given.

Compute the amount of overapplied or underapplied overhead for the month.

Prepare a partial income statement for April. Adjust the Cost of Goods Sold for any overapplied or underapplied overhead.

Analyze:

Based on the partial income statement you have prepared, what portion of each sales dollar is realized as gross profit?

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Analyze

Prepare general journal entries to record each item of cost data given.

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Journal entry worksheet

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Record the cost of materials purchased during month.

Note: Enter debits before credits.

$\backslash$table$[[$Transactions$,$General Journal,Debit,Credit$],[$a$,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Record entry

Clear entry

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