PT Unite specializes in manufacturing a unique bicycle helmet. The model is specifically designed for each customer. The company has enough orders to keep the factory production at 10.000 helmets per month (80% of its full capacity). Unites' monthly manufacturing cost and other expense data are as follows:

Incurred rent on factory equipment

$9.000

Incurred insurance on factory building

1.500

Purchase raw materials on account

75.000

Incurred utility costs for factory

900

Purchase supplies for general office in cash

300

Incurred wages for assembly line workers

53.000

Accrued deprecitiation on office equipment

800

Purchase miscellaneous materials (glue, thread, etc) on account 1.100

Paid factory manager salary 5.700

Paid property taxes on factory building

400

Paid advertising for helmets for 3 months

14.000

Paid sales commissions

10.000

Accrued depreciation on factory building

1.500

Assume PT Unite currently produce two models of helmet: road and mountain. Road helmet uses 55% of raw materials purchased 3.700 direct labor hours. Meanwhile, the mountain helmet uses 35% of raw material purchased and 4.000 direct labor hours. Predetermined overhead rate is 240% of direct labor hours. There is no beginning balance for both models. They are also sold at the end of the period. The sales revenue of road helmet is 140% of its total cost. Meanwhile the sales revenue of

mountain helmet is 145% of its total cost. . The sales were made on account

Instruction;

2. Prepare journal entries for the completion of all helmets, the sale of the jobs. and adjustment of over/under-applied manufacturing overhead.

3. Determine the gross profit from the sale of the helmets.

Answer rating: 100% (QA)

Ref No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Account Title 16 Factory overheads CashAccounts payable Fact... View the full answer