$19,200   $23,040   $62,240     Current year’s costs   24,000   28,800   34,560   87,360 7641   Balance 1/1   8,800   14,400   17,280   40,480     Current year’s costs   34,400   38,400   46,080   118,880 7642   Current year’s costs   46,400   44,000   52,800   143,200

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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Question

For the year ended December 31, 2022, the job cost sheets of Blossom Company contained the following data.

Job
Number
 

Explanation
 
Direct
Materials
 
Direct
Labor
 
Manufacturing
Overhead
 
Total
Costs
7640
 
Balance 1/1
  $20,000   $19,200   $23,040   $62,240
   
Current year’s costs
  24,000   28,800   34,560   87,360
7641
 
Balance 1/1
  8,800   14,400   17,280   40,480
   
Current year’s costs
  34,400   38,400   46,080   118,880
7642
 
Current year’s costs
  46,400   44,000   52,800   143,200


Other data:

1.   Raw materials inventory totaled $12,000 on January 1. During the year, $112,000 of raw materials were purchased on account.
2.   Finished goods on January 1 consisted of Job No. 7638 for $69,600 and Job No. 7639 for $73,600.
3.   Job No. 7640 and Job No. 7641 were completed during the year.
4.   Job Nos. 7638, 7639, and 7641 were sold on account for $424,000.
5.   Manufacturing overhead incurred on account totaled $96,000.
6.   Incurred depreciation on factory machinery $6,400.
7.   Assigned indirect materials of $11,200 and indirect labor of $14,400.

 

 

Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Post each to the T-account
in the following order: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed
jobs.
Work in Process Inventory
1/1
12/31
Work in process balance
24
Unfinished job
Transcribed Image Text:Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Post each to the T-account in the following order: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. Work in Process Inventory 1/1 12/31 Work in process balance 24 Unfinished job
Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (List ail
debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. (List ail debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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