ACCT 241 Week 3 Assignment Help 3

ACCT 241 Week 3 Assignment Help 3 | American University 

1.

Larned Corporation recorded the following transactions for the just completed month.

a. $80,000 in raw materials were purchased on account.

b. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct   materials and the remainder was for indirect materials.

c. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct      labor and the remainder was for indirect labor.

d. Depreciation of $175,000 was incurred on factory equipment.

Required:

Record the above transactions in journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.

a. $94,000 in raw materials were purchased for cash.

b. $89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials..

c. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor.

d. Additional manufacturing overhead costs of $143,000 were incurred and paid.

e. Manufacturing overhead of $152,000 was applied to production using the company’s predetermined overhead rate.

f. All of the jobs in process at the end of the month were completed.

g. All of the completed jobs were shipped to customers.

h. Any under applied or over applied overhead for the period was closed to Cost of Goods Sold.

Required:

1. Post the above transactions to T-accounts.

2. Determine the adjusted cost of goods sold for the period.

2.

Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.

a. $94,000 in raw materials were purchased for cash.

b. $89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials..

c. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor.

d. Additional manufacturing overhead costs of $143,000 were incurred and paid.

e. Manufacturing overhead of $152,000 was applied to production using the company’s predetermined overhead rate.

f. All of the jobs in process at the end of the month were completed.

g. All of the completed jobs were shipped to customers.

h. Any under applied or over applied overhead for the period was closed to Cost of Goods Sold.

Required:

1. Post the above transactions to T-accounts.

2. Determine the adjusted cost of goods sold for the period.

3.

Primare Corporation has provided the following data concerning last month’s manufacturing operations.

Purchases of raw materials $30,000

Indirect materials included in manufacturing overhead $5,000

Direct labor $58,000

Manufacturing overhead applied to work in process $87,000

Underapplied overhead $4,000

________________________________________

Inventories Beginning Ending

Raw materials $12,000 $18,000

Work in process $56,000 $65,000

Finished goods $35,000 $42,000

________________________________________ 

Required:

1. Prepare a schedule of cost of goods manufactured for the month.

2. Prepare a schedule of cost of goods sold for the month. Assume the under applied or over applied overhead is closed to Cost of Goods Sold.

4.

Osborn Manufacturing uses a predetermined overhead rate of $18.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $218,400 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.

The company actually incurred $215,000 of manufacturing overhead and 11,500 direct labor-hours during the period.

Required:

1. Determine the amount of under applied or over applied manufacturing overhead for the period.

2. Assume that the company's under applied or over applied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the under applied or over applied overhead increase or decrease the company’s gross margin? By how much?

5.

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

a. Raw materials purchased on account, $210,000.

b. Raw materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials).

c. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000.

d. Depreciation recorded on factory equipment, $40,000.

e. Other manufacturing overhead costs accrued during October, $70,000.

f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October.

g. Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

h. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

6. The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $524,000

Direct labor cost $70,000

Raw material purchases $118,000

Selling expenses $140,000

Administrative expenses $63,000

Manufacturing overhead applied to work in process $90,000

Actual manufacturing overhead costs $80,000

________________________________________

Inventories Beginning Ending

Raw materials $7,000               $15,000

Work in process $10,000 $5,000

Finished goods $20,000 $35,000

________________________________________

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.