Job 1 Job 2 Job 3 Total Direct Labor $4,200 2,800 9,000 $ 16,000 Direct Materials $ 4,800 1,600 3,700 $ 10,100 Rooney's predetermined manufacturing overhead rate was $0.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $6,152. Rooney paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $17,000 cash and Job 2 for $7,900 cash. Rooney also paid $3,400 cash for selling and administrative expenses for the year. Rooney uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required a. Record the preceding events in a horizontal statements model. The first row shows beginning balances. b. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. c. Determine the gross margin for the year.

Job 1 Job 2 Job 3 Total Direct Labor $4,200 2,800 9,000 $ 16,000 Direct Materials $ 4,800 1,600 3,700 $ 10,100 Rooney's predetermined manufacturing overhead rate was $0.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $6,152. Rooney paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $17,000 cash and Job 2 for $7,900 cash. Rooney also paid $3,400 cash for selling and administrative expenses for the year. Rooney uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required a. Record the preceding events in a horizontal statements model. The first row shows beginning balances. b. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. c. Determine the gross margin for the year.

Name: Ok Job 1Job 2Job 3TotalDirect Labor$4,2002,8009,000$ 16,000Direct Mate
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Description: Ok Job 1Job 2Job 3TotalDirect Labor$4,2002,8009,000$ 16,000Direct Materials$ 4,8001,6003,700$ 10,100Rooney's predetermined manufacturing overhead rate was $0.40 per direct labor dollar. Actual manufacturing overhead costsamounted to $6,152. Rooney pa

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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