Question: Moving to another question will save this response. Question 19 of 23 Question 19 14 points Caterpillar manufactures construction equipment and recorded the following transactions

 Moving to another question will save this response. Question 19 of

Moving to another question will save this response. Question 19 of 23 Question 19 14 points Caterpillar manufactures construction equipment and recorded the following transactions for the just completed month. The company uses a job order costing system and had beginning balances of $10,000 in raw materials, $25,000 in work in process, and so for Finished goods. (a) $75,000 in raw materials were purchased for cash (b) $63,000 in raw materials were requisitioned for use in production of cranes. Of this amount, $43,000 was for direct materials and the remainder was for indirect materials (c) Total labor wages of $100,000 were incurred and paid in cash. Of this amount 365,000 was for direct labor (d) Additional manufacturing overhead costs of $70.000 were incurred and paid in cash (e) Manufacturing overhead costs of $115.000 were applied to jobs using the company's predetermined overhead rate in the ending, balances of work in process inventory is $10,000 and Finished goods inventory is $20,000 Underappled or overapplied overhead for the month was closed out to Cost of Goods. a. Determine the ending inventory of raw materials points) b. Determine the cost of goods manufactured. (5 points) c. Assume cost of goods manufactured was $250,000, regardless of your answer in part b. What was the unadjusted cost of goods sold? (2 points) d. Was overhead over applied or underapplied? (1 point) By how much? (1 point) What is the journal entry to close the balance in Manufacturing overhead account to COGST2 points) Please show your work to get full credits on answers For the toolbar, press ALT F10 (POO ALT-FN-F10(Mac). BIVS Paragraph Arial 14px EEA2 I. x O

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!