.4 (Journal entries) Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materi- als. Until the end of April 2010, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations. Raw material purchased on account, $204,000. Direct material issued to Job #4263 cost $163,800; indirect material issued for that job cost $12,460. Direct material costing $1,870 was issued to start production of Job #4264. Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct factory employees were paid $15 per hour. Actual factory overhead costs incurred for the month totaled $68,700. This overhead consisted of $18,000 of supervisory salaries, $21,500 of depreciation charges, $7,200 of insurance, $12,500 of indirect labor, and $9,500 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued.
LO.4 (Journal entries) Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materi- als. Until the end of April 2010, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations.
-
Raw material purchased on account, $204,000.
-
Direct material issued to Job #4263 cost $163,800; indirect material issued for that
job cost $12,460. Direct material costing $1,870 was issued to start production of Job #4264. -
Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct factory employees were paid $15 per hour.
-
Actual
factory overhead costs incurred for the month totaled $68,700. This overhead consisted of $18,000 of supervisory salaries, $21,500 ofdepreciation charges, $7,200 of insurance, $12,500 of indirect labor, and $9,500 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued. -
Overhead is applied to production at the rate of $18 per direct labor hour.
Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $4,300 and $11,400. Of the beginning WIP balance, $800 was related to Job #4263. Job #4263 was completed during April.
-
Prepare journal entries for Transactions 1–5.
-
Determine the balance in Raw Material Inventory at the end of the month.
-
Determine the balance in Work in Process Inventory at the end of the month.
-
Determine the cost of the goods manufactured during April. If completed goods consist of 10,000 similar units, what was the cost per unit?
-
What is the amount of underapplied or overapplied overhead at the end of April?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
