Comprehensive Project 1 v2

Using Excel

Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 2024, the company's inventory balances were as follows:

Raw Materials Inventory: $63,000

Work-in-Process Inventory: $41,000

Finished Goods Inventory: $58,000

the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $806,000 of total manufacturing overhead for an estimated activity level of 62,000 direct labor-hours.

1. Compute the predetermined overhead allocation rate for fiscal year 2024. 1. Use the blue shaded areas for inputs.

2. Use Excel to journalize the transactions listed in the Transactions tab for the current year, 2024.

3. Enter the beginning balances for the inventories in the T-accounts. Assume the rest of the accounts have beginning balances of zero Post the journal entries to T-accounts. T-account balances will automatically calculate except for Manufacturing Overhead. You will need to calculate 3 the appropriate balance in that account.

4. Adjust the manufacturing overhead account.

4 a. Prepare the journal entry

4 b. Post to T-accounts.

Transactions:

Comprehensive Project 1 V2 Using Excel Boyd Corporation is a manufacturer that uses job-order costing. On January 1, 2024 the company's inventory balances were as follows: Raw Materials Inventory Work-in-Process Inventory Finished Goods Inventory $63,000 $41,000 $58,000 the current year, 2024, the company's predetermined overhead rate per direct labor-hour was based on a cost formula that estimated $806,000 of total manufacturing overhead for an estimated activity level of 62,000 direct labor-hours. Requirements: Compute the predetermined overhead allocation rate for fiscal year 2024. 1. Use the blue shaded areas for inputs. Use Excel to journalize the transactions listed in the Transactions tab for 2. the current year, 2024 Enter the beginning balances for the inventories in the T-accounts. Assume the rest of the accounts have beginning balances of zero. Post the journal entries to T-accounts. T-account balances will automatically calculate except for Manufacturing Overhead. You will need to calculate 3. the appropriate balance in that account. 4. Adjust the manufacturing overhead account. Prepare the journal entry b Post to T-accounts. 5. Complete the Schedule of Cost of Goods Manufactured for 2024. a 1 Manufacturing Accounts 2 3 Accounts Receivable 4 Raw Materials Inventory 5 Work-in-Process Inventory 6 Finished Goods Inventory 7 Accounts Payable B Wages Payable 9 Sales Revenue 10 Manufacturing Overhead 11 Cost of Goods Sold Sollin R Arministrative Funnnen 1 Requirement 1 2 Compute the predetermined overhead allocation rate for fiscal year 2024 3 Predetermined overhead allocation rate Total estimated overhead costs / Total estimated machine hours 6 Total estimated overhead costs 10 Total estimated Direct-Labor hours Predetermined overhead allocation rate 12 10 12 1 1 Requirement 2 Journalize the transactions in the general journal. 2 3 Date Account/Explanation Debit Credit $ 5 (a) 7 (b) 10 10 2 13 (c 14 35 17 10 (d) d A 5 > E (e H 24 25 26 22 XD 30 (0) BE 34 35 (h) T 19 10 41 42 44 Requirement Post the journal entries. 2 1 Accounts Receivable Accounts Payable Sales Revenue 0 0 0 10 Raw Materials Inventory 11 12 bal Wagos Payable Manufacturing Overhead 14 0 18 17 bal Work in Process Inventory 0 Cost of Goods Sold 20 21 22 0 ppariswwssn=8 Finished Goods Inventory bal 0 25 0 Selling & Administrative Expenses 30 G 1 Requirement 4 2 Adjust the manufacturing overhead 3 1. Prepare the journal entry 4 2. Post the journal entry to the T-accounts worksheet 5 7 Date AccountExplanation Debit Credit 0 9 10 Adjusted manufacturing overhead 12 13 14 The following transactions were recorded for the year: a Raw materials were purchased on account, $558,000. b Raw materials used in production, $528,000. All of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $648,000; indirect labor, $198,000; selling and administrative salaries, $288,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing). $415,000. e incurred various manufacturing overhead costs (e.g., rent, insurance, and utilities), $548,000. f Manufacturing overhead cost was applied to production. The company actually worked 44,000 direct labor- hours on all jobs during the year. g Jobs costing $1,728,000 to manufacture according to their job cost sheets were completed during the year. Jobs were sold on account to customers during the year for a total of $2,848,000. The jobs cost $1,738,000 to manufacture according to their job cost sheets. h