1. Raw materials used to produce $100,000 (all direct materials).2. Salaries costs incurred on account: direct labour $200,000 (40,000 hours); indirect labour $60,000; selling and administrative $130,000.3. Utilities cost incurred for the factory $40,000 on credit.4. Advertising cost incurred for the year $50,000 on credit.5. Depreciation recorded for the year $30,000, of which 60% related to the factory and 40% related to selling and administrative activities.6. Other factory overhead costs incurred for the year $40,000 on account.7. Prepaid rent of $50,000 expired during the year; all of this is related to the factory.8. The company applied overhead on the basis of direct labour-hours at $6.50 per hour.9. The cost of goods manufactured for the year was $600,000.10. Goods that cost $600,000 according to the job cost sheets were sold on account, cost is two-third of the sales. a) Prepare journal entries for the company. Write your entries with the numbers 1-10. b) Is overhead underapplied or overapplied for the year? Prepare the closing entry which close the balance to Cost of goods sold.c) Identify the following cost is Direct or Indirect?Cost Cost of screws used to secure wood trim in a yacht at a yacht manufacturer Cost object A particular yacht
1. Raw materials used to produce $100,000 (all direct materials).
2. Salaries costs incurred on account: direct labour $200,000 (40,000 hours); indirect labour $60,000; selling and administrative $130,000.
3. Utilities cost incurred for the factory $40,000 on credit.
4. Advertising cost incurred for the year $50,000 on credit.
5.
6. Other
7. Prepaid rent of $50,000 expired during the year; all of this is related to the factory.
8. The company applied overhead on the basis of direct labour-hours at $6.50 per hour.
9. The cost of goods manufactured for the year was $600,000.
10. Goods that cost $600,000 according to the
a) Prepare
b) Is overhead underapplied or overapplied for the year? Prepare the closing entry which close the balance to Cost of goods sold.
c) Identify the following cost is Direct or Indirect?
Cost
Cost of screws used to secure wood trim in a yacht at a yacht manufacturer
Cost object
A particular yacht
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