The GO-Magic company uses job-order costing system. The following data relate to the first quarter of...

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The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials purchased on credit $190,000 b. Materials issued from store room to production, $175,000 [75% direct materials and 20% indirect materials). c. Utility costs incurred in the factory $19,000 d. Cost of employee salaries a. Direct Labour $45,000 b. Indirect cost and support workers in the factory $23,000 c. Marketing salaries $65,000 e. Advertising cost incurred $84,000 f. Prepaid insurance expired during the quarter, $75,000.[ the ratio of insurance production to admin insurance = 2: 1] g. Rental cost = $36,000 [selling cost consists of 25% of the total rental cost h. Company applies manufacturing overhead based on machine hours Budgeted overhead cost =$200,000 and Estimated machine hours = 42000 hours. Actual machine hours worked = 45,000 hours. Calculate the PR and journalize the applied cost i. Goods costing to produce $1,400,000 were completed during the quarter Sales on credit REQUIRED 1. Prepare Journal entries for the quarter 2. Is overhead cost under-applied or over-applied? What adjustment should be made to correct the cost of goods account $3,000,000. The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials purchased on credit $190,000 b. Materials issued from store room to production, $175,000 [75% direct materials and 20% indirect materials). c. Utility costs incurred in the factory $19,000 d. Cost of employee salaries a. Direct Labour $45,000 b. Indirect cost and support workers in the factory $23,000 c. Marketing salaries $65,000 e. Advertising cost incurred $84,000 f. Prepaid insurance expired during the quarter, $75,000.[ the ratio of insurance production to admin insurance = 2: 1] g. Rental cost = $36,000 [selling cost consists of 25% of the total rental cost h. Company applies manufacturing overhead based on machine hours Budgeted overhead cost =$200,000 and Estimated machine hours = 42000 hours. Actual machine hours worked = 45,000 hours. Calculate the PR and journalize the applied cost i. Goods costing to produce $1,400,000 were completed during the quarter Sales on credit REQUIRED 1. Prepare Journal entries for the quarter 2. Is overhead cost under-applied or over-applied? What adjustment should be made to correct the cost of goods account $3,000,000.

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Prepare Journal Entries for the Quarter Materials Purchased on Credit Date Account Titles and Explanation Debit Credit Date Materials Purchases 190000 ... View the full answer