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 requisitioned for production cost $250,000 [direct materials and indirect materials are proportioned by 6:2]. b. Repairs costs incurred are $75,000 c. Raw Materials purchased on cash $150,000 d. Salaries Direct Labour Supervisors salaries [factory Marketing cost Admin Salaries $ 125,000 50,000 45,000 80,000 e. Selling commission cost incurred is $60,000 f. Insurance for factory $70,000. Admin insurance is 40% of the factory insurance g. Rent expense for the factory is $50,000 and the rent for the shop is $45,000 h. Supplies expense for the factory incurred during the month is $15,000 [on account] i. Use the information below to find the Predetermined Rate using machine hours as the cost driver Estimated Overhead Budgeted machine hours Actual machine hours Actual overhead $ 76,000 21,000 hours 30,000 hours 142,000 j. Journalize the applied cost used in section (i) k. Sold goods costing $400,000 for $650,000 1. Depreciation for equipment of factory for the period was $16700 m. Depreciation for the building [store] was $8,500 n. $45,000 Cash was paid for the suppliers REQUIRED 1. Prepare Journal entries for the quarter 2. Is production cost underallpied or overapplied? 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 requisitioned for production cost $250,000 [direct materials and indirect materials are proportioned by 6:2]. b. Repairs costs incurred are $75,000 c. Raw Materials purchased on cash $150,000 d. Salaries Direct Labour Supervisors salaries [factory Marketing cost Admin Salaries $ 125,000 50,000 45,000 80,000 e. Selling commission cost incurred is $60,000 f. Insurance for factory $70,000. Admin insurance is 40% of the factory insurance g. Rent expense for the factory is $50,000 and the rent for the shop is $45,000 h. Supplies expense for the factory incurred during the month is $15,000 [on account] i. Use the information below to find the Predetermined Rate using machine hours as the cost driver Estimated Overhead Budgeted machine hours Actual machine hours Actual overhead $ 76,000 21,000 hours 30,000 hours 142,000 j. Journalize the applied cost used in section (i) k. Sold goods costing $400,000 for $650,000 1. Depreciation for equipment of factory for the period was $16700 m. Depreciation for the building [store] was $8,500 n. $45,000 Cash was paid for the suppliers REQUIRED 1. Prepare Journal entries for the quarter 2. Is production cost underallpied or overapplied?

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1 Journal Entries for the Quarter a Materials Requisitioned Work in Process Inventory 200000 Manufac... View the full answer