26 l30 132 128 Baab Corporation is a manufacturing firm that uses job-order costing. The company's Inventory balances were as follows at the beginning and end of the year: 134 lae Taa 40 42 Beginning Balance Raw materials Work in process Finished Goods %2$ Ending Balance 14.000 $ 27,000 S 62,000 S 22.000 9,000 77,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,000. Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect). The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000. Selling costs, $147,000 Factory utility costs, $10,000. Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level activity for the year was 34,000 machine-hours. Sales for the year totaled $1,253,000. Required: Prepare a-schedule of cost of goeds manufactured. DO NOT DO PART A Complete the T accounts on the excel sheet that I sent to you and the related journal entries. Was the overhead underapplied or overapplied? By how much? Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.
26 l30 132 128 Baab Corporation is a manufacturing firm that uses job-order costing. The company's Inventory balances were as follows at the beginning and end of the year: 134 lae Taa 40 42 Beginning Balance Raw materials Work in process Finished Goods %2$ Ending Balance 14.000 $ 27,000 S 62,000 S 22.000 9,000 77,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $315,000. Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect). The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000. Selling costs, $147,000 Factory utility costs, $10,000. Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level activity for the year was 34,000 machine-hours. Sales for the year totaled $1,253,000. Required: Prepare a-schedule of cost of goeds manufactured. DO NOT DO PART A Complete the T accounts on the excel sheet that I sent to you and the related journal entries. Was the overhead underapplied or overapplied? By how much? Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
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Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Beginning Balance
Ending Balance
14,000 $
27,000 $
62,000 $
22,000
9,000
77,000
Raw materials
Work in process
24
$
Finished Goods
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing
overhead cost. The following transactions were recorded for the year:
kh
Raw materials were purchased, $315,000.
Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect).
The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000.
Selling costs, $147,000.
Factory utility costs, $10,000.
Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours.
Sales for the year totaled $1,253,000.
Prepare a schedule of cost of goods manufactured. DO NOT DO PART A
Complete the T accounts on the excel sheet that I sent to you and the related journal entries.
Was the overhead underapplied or overapplied? By how much?
Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.
leb Required:
ali
Transcribed Image Text:A
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BAAB CORP
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RAW MTL'S
W-I-P
FIN GOODS INVENT
14,000
27,000
62,000
6.
7
8.
9.
10
12
22,000
9,000
77,000
13
14
15
16
17
18
19
20
21
= Sheet1
Sheet2
Sheet3
Workbook Statistics
M.
3.
5.
1.
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