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Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $540,000, and management budgeted 37,500 direct labor-hours. The company had no Materials, Work-In-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: 1. April Insurance cost for the manufacturing property and equipment was $2,200. The premium had been paid in January. 2. Recorded $1,305 depreciation on an administrative asset. 3. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. 4. Paid factory utility bill, $6,830, in cash. 5. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. 6. Incurred and paid other factory overhead costs, $6,510. 7. Purchased $28,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit. 8. Requisitioned $22,500 of direct materials and $2,400 of indirect materials from Materials Inventory. 9. Incurred and paid miscellaneous selling and administrative expenses, $6,780. 10. Incurred $4,345 depreciation on manufacturing equipment for April. 11. Paid advertising expenses in cash, $3,250. 12. Applied factory overhead to production on the basis of direct labor hours. 13. Completed goods costing $68,000 during the month. 14. Made sales on account in April, $66,090. The Cost of Goods Sold was $54,580. Prepare a schedule of Cost of Goods Manufactured. Prepare a schedule of Cost of Goods Sold. Prepare the income statement for April

Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $540,000, and management budgeted 37,500 direct labor-hours. The company had no Materials, Work-In-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: 1. April Insurance cost for the manufacturing property and equipment was $2,200. The premium had been paid in January. 2. Recorded $1,305 depreciation on an administrative asset. 3. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. 4. Paid factory utility bill, $6,830, in cash. 5. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. 6. Incurred and paid other factory overhead costs, $6,510. 7. Purchased $28,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit. 8. Requisitioned $22,500 of direct materials and $2,400 of indirect materials from Materials Inventory. 9. Incurred and paid miscellaneous selling and administrative expenses, $6,780. 10. Incurred $4,345 depreciation on manufacturing equipment for April. 11. Paid advertising expenses in cash, $3,250. 12. Applied factory overhead to production on the basis of direct labor hours. 13. Completed goods costing $68,000 during the month. 14. Made sales on account in April, $66,090. The Cost of Goods Sold was $54,580. Prepare a schedule of Cost of Goods Manufactured. Prepare a schedule of Cost of Goods Sold. Prepare the income statement for April

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 13E: Cycle Specialists manufactures goods on a job order basis. During the month of June, three jobs were...
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Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $540,000, and management budgeted 37,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: 1. April insurance cost for the manufacturing property and equipment was $2,200. The premium had been paid in January. 2. Recorded $1,305 depreciation on an administrative asset. 3. Purchased 21 pounds of high-grade polishing materials at S16 per pound (indirect materials). The purchase was on credit. 4. Paid factory utility bill, $6,830, in cash. 5. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. 6. Incurred and paid other factory overhead costs, $6,510. 7. Purchased $28,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit. 8. Requisitioned $22,500 of direct materials and $2,400 of indirect materials from Materials Inventory. 9. Incurred and paid miscellaneous selling and administrative expenses, $6,780. 10. Incurred $4,345 depreciation on manufacturing equipment for April. 11. Paid advertising expenses in cash, $3,250. 12. Applied factory overhead to production on the basis of direct labor hours. 13. Completed goods costing $68,000 during the month. 14. Made sales on account in April, $66,090. The Cost of Goods Sold was $54,580. Prepare a schedule of Cost of Goods Manufactured. Prepare a schedule of Cost of Goods Sold. Prepare the income statement for April.
Transcribed Image Text:Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $540,000, and management budgeted 37,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: 1. April insurance cost for the manufacturing property and equipment was $2,200. The premium had been paid in January. 2. Recorded $1,305 depreciation on an administrative asset. 3. Purchased 21 pounds of high-grade polishing materials at S16 per pound (indirect materials). The purchase was on credit. 4. Paid factory utility bill, $6,830, in cash. 5. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. 6. Incurred and paid other factory overhead costs, $6,510. 7. Purchased $28,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. The purchase was on credit. 8. Requisitioned $22,500 of direct materials and $2,400 of indirect materials from Materials Inventory. 9. Incurred and paid miscellaneous selling and administrative expenses, $6,780. 10. Incurred $4,345 depreciation on manufacturing equipment for April. 11. Paid advertising expenses in cash, $3,250. 12. Applied factory overhead to production on the basis of direct labor hours. 13. Completed goods costing $68,000 during the month. 14. Made sales on account in April, $66,090. The Cost of Goods Sold was $54,580. Prepare a schedule of Cost of Goods Manufactured. Prepare a schedule of Cost of Goods Sold. Prepare the income statement for April.
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