BE Properties produces combines for a variety of customers in Sask. The company's year end is...

   

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BE Properties produces combines for a variety of customers in Sask. The company's year end is November 30, 2021. For the year just ended BE Properties budgeted $112,000 in manufactured overhead cost, $224, 000in direct labor cost and 14,000 direct labor hours. The company uses actual direct labor hours which haven't changed since 2018 and the budgeted direct labor hourly rate has equalled the actual direct labor hourly rate. Predetermined manufacturing overhead application rate has not changed in the past three years. The following information is available at BE Properties year end: • Manufacturing overhead was overapplied by $10,000. ● ● ● ● ● Sales Commission was 4% of sales revenue. Raw materials purchased during the year totals $643,520 (all purchased on account) $35,000 are indirect raw materials. Opening raw materials inventory was $10,000. Corporate income tax is 11%. Administrative expenses were $148,000. .. Actual factory payroll was $248,725. $22,725 was for indirect labor. Opening prepaid insurance balance on Dec 1, 2020 was $1,600. With additional insurance premiums of $13,200 during the current fiscal year. 75% of the insurance relates to the factory, while 25% relates to selling and administration. Balance of raw materials on Nov 30, 2021 was $18,000. Utilities incurred during the year in the factory was $17,000. Selling and administrative utilities incurred were $2,500. The years total sales revenue was $1,800,000. According to the job cost sheets those combines that were sold cost $1,100,000 to manufacture. Combines cost $950,000 to manufacture according to the job cost sheets that year and were completed and transferred to the finished goods yard. Work in process inventory on November 30, 2021 had incurred $15,192 of direct materials and 72 actual direct labor hours. Work in process inventory on November 20, 2020 had $24,952 of direct raw materials and 102 actual labor hours. ● • The adjusted balance of finished goods inventory on November 30, 2020 was $350,000. Depreciation charges for the year totalled $20,000. Depreciation is to be allocated to the factory equipment and to the selling and administrative equipment. Part 1. Record the 2021 transactions in "T" accounts including any opening and closing balances. BE Properties produces combines for a variety of customers in Sask. The company's year end is November 30, 2021. For the year just ended BE Properties budgeted $112,000 in manufactured overhead cost, $224, 000in direct labor cost and 14,000 direct labor hours. The company uses actual direct labor hours which haven't changed since 2018 and the budgeted direct labor hourly rate has equalled the actual direct labor hourly rate. Predetermined manufacturing overhead application rate has not changed in the past three years. The following information is available at BE Properties year end: • Manufacturing overhead was overapplied by $10,000. ● ● ● ● ● Sales Commission was 4% of sales revenue. Raw materials purchased during the year totals $643,520 (all purchased on account) $35,000 are indirect raw materials. Opening raw materials inventory was $10,000. Corporate income tax is 11%. Administrative expenses were $148,000. .. Actual factory payroll was $248,725. $22,725 was for indirect labor. Opening prepaid insurance balance on Dec 1, 2020 was $1,600. With additional insurance premiums of $13,200 during the current fiscal year. 75% of the insurance relates to the factory, while 25% relates to selling and administration. Balance of raw materials on Nov 30, 2021 was $18,000. Utilities incurred during the year in the factory was $17,000. Selling and administrative utilities incurred were $2,500. The years total sales revenue was $1,800,000. According to the job cost sheets those combines that were sold cost $1,100,000 to manufacture. Combines cost $950,000 to manufacture according to the job cost sheets that year and were completed and transferred to the finished goods yard. Work in process inventory on November 30, 2021 had incurred $15,192 of direct materials and 72 actual direct labor hours. Work in process inventory on November 20, 2020 had $24,952 of direct raw materials and 102 actual labor hours. ● • The adjusted balance of finished goods inventory on November 30, 2020 was $350,000. Depreciation charges for the year totalled $20,000. Depreciation is to be allocated to the factory equipment and to the selling and administrative equipment. Part 1. Record the 2021 transactions in "T" accounts including any opening and closing balances.