1. Journalize the following transactions: 1. Madison Co. purchased $225,500 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Utilities: $2,800 b. Depreciation on equipment: $12,650 c. Repairs on account: $3,200 d. Rent paid, $6,000 e. Insurance (prepaid policy): $3,350 3. Madison Co. issued $75,500 of material to Process A. 4. Assigned $18,000 is factory labor, of which $12,000 is indirect labor 5. Manufacturing Overhead costs are applied at 82% of material issued 6. Balance in WIP-A is transferred to Process -B 7. $51,000 of material is issued to Process - B 8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor 9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of material issued (to process B) 10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing overhead costs charged to accounts payable totaled $1,500 11. Balance of Process B is transferred to Finished Goods 12. The cost transferred to finished goods included 62,500 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash; they sold 4,125 units for $24,500 on account 13. Determine over or under-applied manufacturing overhead and prepare adjusting entry.
1. Journalize the following transactions: 1. Madison Co. purchased $225,500 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Utilities: $2,800 b. Depreciation on equipment: $12,650 c. Repairs on account: $3,200 d. Rent paid, $6,000 e. Insurance (prepaid policy): $3,350 3. Madison Co. issued $75,500 of material to Process A. 4. Assigned $18,000 is factory labor, of which $12,000 is indirect labor 5. Manufacturing Overhead costs are applied at 82% of material issued 6. Balance in WIP-A is transferred to Process -B 7. $51,000 of material is issued to Process - B 8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor 9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of material issued (to process B) 10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing overhead costs charged to accounts payable totaled $1,500 11. Balance of Process B is transferred to Finished Goods 12. The cost transferred to finished goods included 62,500 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash; they sold 4,125 units for $24,500 on account 13. Determine over or under-applied manufacturing overhead and prepare adjusting entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Journalize the following transactions:
1. Madison Co. purchased $225,500 of raw materials on account.
2. Actual manufacturing overhead costs include:
a. Utilities: $2,800
b. Depreciation on equipment: $12,650
c. Repairs on account: $3,200
d. Rent paid, $6,000
e. Insurance (prepaid policy): $3,350
3. Madison Co. issued $75,500 of material to Process A.
4. Assigned $18,000 is factory labor, of which $12,000 is indirect labor
5. Manufacturing Overhead costs are applied at 82% of material issued
6. Balance in WIP-A is transferred to Process --B
7. $51,000 of material is issued to Process - B
8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor
9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of material
issued (to process B)
10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing overhead
costs charged to accounts payable totaled $1,500
11. Balance of Process B is transferred to Finished Goods
12. The cost transferred to finished goods included 62,500 units. Calculate the cost per
unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash; they sold
4,125 units for $24,500 on account
13. Determine over or under-applied manufacturing overhead and prepare adjusting entry.
Transcribed Image Text:Date
Accounting 2120
Chapter 17 - Process Costing
Assignment 1
Ref.
Account Title
Debit
Credit
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