The following information applies to the Johnson Tools Company for the year. Factory Rent $330,000 Direct Materials
Question:
The following information applies to the Johnson Tools Company for the year.
Factory Rent | $330,000 |
Direct Materials Inventory, Beginning | 96,000 |
Direct Materials Inventory, Ending | 87,000 |
Direct Materials Purchases | 654,000 |
Direct Labor-Wages | 425,000 |
Indirect Labor-Wages | 28,000 |
Finished Goods Inventory, Beginning | 25,000 |
Finished Goods Inventory, Ending | 44,000 |
Indirect Materials | 66,000 |
Plant Utilities | 40,000 |
General and Administrative | 101,350 |
Work-in-Process Inventory, Beginning | 27,000 |
Work-in-Process Inventory, Ending | 33,000 |
Marketing Expenses | 225,000 |
Sales Revenue | 2,550.000 |
Required:
Prepare a statement of cost of goods manufactured and an income statement for the year.
Q2 Warren Company uses a predetermined overhead rate. Overhead for the next twelve months is estimated to be $480,000. Jackson applies overhead as a percentage of direct labor cost. Direct labor costs are estimated to be $400,000 for the next year. During the year actual direct labor costs amounted to $520,000 and the actual overhead was $605,000.
Required:
(1) Calculate the over/under-applied overhead for the year.
(2) Prepare the journal entries to close the accounts, assuming that the over/under-applied overhead is closed to cost of goods sold.
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins