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: Raw materials Work in process 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 33,500 machine-hours and incur $268,000 in manufacturing overhead cost. The following transactions were recorded for the year: .Raw materials were purchased, $315,500. • Raw materials were requisitioned for use in production, $307,500 ($280,500 direct and $27,000 indirect). . The following employee costs were incurred: direct labor, $377,500; indirect labor, $96,500; and administrative salaries, $172,500. Selling costs, $147,500. . Factory utility costs, $10,500. . Depreciation for the year was $157,000 of which $140,000 is related to factory operations and $17,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,100 machine-hours. . Sales for the year totaled $1,273,000. Beginning Balance $14,500 Required: a. Prepare a schedule of cost of goods manufactured. Required A $ 27,500 $ 62,500 Required C Complete this question by entering your answers in the table below. Baab Corporation Income Statement Ending Balance $ 22,500 $9,500 $77,500 Selling and administrative expenses: Prepare an Income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. < Required A 0 0 0
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: Raw materials Work in process 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 33,500 machine-hours and incur $268,000 in manufacturing overhead cost. The following transactions were recorded for the year: .Raw materials were purchased, $315,500. • Raw materials were requisitioned for use in production, $307,500 ($280,500 direct and $27,000 indirect). . The following employee costs were incurred: direct labor, $377,500; indirect labor, $96,500; and administrative salaries, $172,500. Selling costs, $147,500. . Factory utility costs, $10,500. . Depreciation for the year was $157,000 of which $140,000 is related to factory operations and $17,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,100 machine-hours. . Sales for the year totaled $1,273,000. Beginning Balance $14,500 Required: a. Prepare a schedule of cost of goods manufactured. Required A $ 27,500 $ 62,500 Required C Complete this question by entering your answers in the table below. Baab Corporation Income Statement Ending Balance $ 22,500 $9,500 $77,500 Selling and administrative expenses: Prepare an Income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. < Required A 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Ef 67.
Transcribed Image Text: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:
Raw materials
Work in process
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 33,500 machine-hours and incur $268,000 in manufacturing overhead cost. The
following transactions were recorded for the year:
Beginning
Balance
$ 14,500
$ 27,500
$ 62,500
. Raw materials were purchased, $315,500.
• Raw materials were requisitioned for use in production, $307,500 ($280,500 direct and $27,000 indirect).
. The following employee costs were incurred: direct labor, $377,500; indirect labor, $96,500; and administrative salaries,
$172,500.
.
Selling costs, $147,500.
. Factory utility costs, $10,500.
Depreciation for the year was $157,000 of which $140,000 is related to factory operations and $17,000 is related to selling,
general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,100 machine-hours.
. Sales for the year totaled $1,273,000.
Required:
a. Prepare a schedule of cost of goods manufactured.
Required A Required C
Ending
Balance
$ 22,500
$9,500
$ 77,500
Complete this question by entering your answers in the table below.
Baab Corporation
Income Statement
Prepare an Income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods
Sold.
Selling and administrative expenses:
< Required A
0
0
0
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