Alexa Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: $26,000 $47,000 $133,000 Raw materials Work in process Finished goods The company applies overhead to jobs using a pre-determined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work 31,000 machine hours and incur $248,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials purchased: $411,000 b. Raw materials requisitioned for use in production: $409,000 ($388,000 direct and $21,000 indirect) c. The following employee costs were incurred: $145,000 $61,000 Administrative salaries: $190,000 Direct labour: Indirect labour: d. Selling costs: $148,000 e. Factory utility costs: $12,000 Prepare the appropriate journal entry for each of the items above (a through e). You can assume that all transactions with employees, customers, and suppliers were conducted in cash.

Alexa Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: $26,000 $47,000 $133,000 Raw materials Work in process Finished goods The company applies overhead to jobs using a pre-determined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would work 31,000 machine hours and incur $248,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials purchased: $411,000 b. Raw materials requisitioned for use in production: $409,000 ($388,000 direct and $21,000 indirect) c. The following employee costs were incurred: $145,000 $61,000 Administrative salaries: $190,000 Direct labour: Indirect labour: d. Selling costs: $148,000 e. Factory utility costs: $12,000 Prepare the appropriate journal entry for each of the items above (a through e). You can assume that all transactions with employees, customers, and suppliers were conducted in cash.

Name: Alexa Company is a manufacturing firm that uses job-order costing. At
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Description: Alexa Company is a manufacturing firm that uses job-order costing. At the beginning ofthe year, the company's inventory balances were as follows:$26,000$47,000$133,000Raw materialsWork in processFinished goodsThe company applies overhead to jobs usi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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