Goods Inventory at the beginning of April. These transactions were recorded during April: a. April insurance...

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Goods Inventory at the beginning of April. These transactions were recorded during April: a. April insurance cost for the manufacturing property and equipment was $1,900. The premium had been paid in January. b. Recorded $1,095 depreciation on an administrative asset. c. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. d. Paid factory utility bill, $6,590, in cash. e. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. f. Incurred and paid other factory overhead costs, $6,330. g. Purchased $25,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit. h. Requisitioned $19,500 of direct materials and $1,800 of indirect materials from Materials Inventory. i. Incurred and paid miscellaneous selling and administrative expenses, $5,940. J. Incurred $3,715 depreciation on manufacturing equipment for April. k. Paid advertising expenses in cash, $2,800. 1. Applied factory overhead to production on the basis of direct labor hours. m. Completed goods costing $65,000 during the month. n. Made sales on account in April, $58,830. The Cost of Goods Sold was $49,540. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold. 5. Prepare the income statement for April. Goods Inventory at the beginning of April. These transactions were recorded during April: a. April insurance cost for the manufacturing property and equipment was $1,900. The premium had been paid in January. b. Recorded $1,095 depreciation on an administrative asset. c. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. d. Paid factory utility bill, $6,590, in cash. e. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. f. Incurred and paid other factory overhead costs, $6,330. g. Purchased $25,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit. h. Requisitioned $19,500 of direct materials and $1,800 of indirect materials from Materials Inventory. i. Incurred and paid miscellaneous selling and administrative expenses, $5,940. J. Incurred $3,715 depreciation on manufacturing equipment for April. k. Paid advertising expenses in cash, $2,800. 1. Applied factory overhead to production on the basis of direct labor hours. m. Completed goods costing $65,000 during the month. n. Made sales on account in April, $58,830. The Cost of Goods Sold was $49,540. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of Cost of Goods Manufactured and a schedule of Cost of Goods Sold. 5. Prepare the income statement for April.

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1 Predetermined Factory Overhead Rate To calculate the predetermined factory overhead rate you need to estimate the total factory overhead costs and d... View the full answer