Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materials. Until the end of April, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations.Raw material purchased on account, $408,000.Direct material issued to Job #4263 cost $327,600; indirect material issued for that job cost $24,920. Direct material costing $3,740 was issued to start production of Job #4264.Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct labor employees were paid $30 per hour.Other actual factory overhead costs incurred for the month totaled $137,400. This overhead consisted of $36,000 of supervisory salaries, $43,000 of depreciation charges, $14,400 of insurance, $25,000 of indirect labor, and $19,000 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued.Overhead is applied to production at the rate of $36 per direct labor hour.Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $8,600 and $22,800. Of the beginning WIP balance, $1,600 was related to Job #4263. Job #4263 was completed during April. a. Prepare journal entries for Transactions 1–5.Note: List any multiple debits or any multiple credits in alphabetical order by account name. AccountDebitCredit1Answer Answer Answer Answer Answer Answer To record raw materials purchased on account 2Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer To record the direct materials issued 3Answer Answer Answer Answer Answer Answer Answer Answer Answer To record the labor costs 4Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer To record actual overhead costs 5Answer Answer Answer Answer Answer Answer Answer Answer Answer To record the application of OH b. Determine the balance in Raw Material Inventory at the end of the month. $Answer c. Determine the balance in Work in Process Inventory at the end of the month. $Answer

The question is based on the concept of Cost Accounting.

Answered: Nottaway Flooring produces custom-made…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Nottaway Flooring produces custom-made floor tiles. The company’s Raw Material Inventory account contains both direct and indirect materials. Until the end of April, the company worked solely on a large job (#4263) for a major client. Near the end of the month, Nottaway began Job #4264. The following information was obtained relating to April production operations.

Raw material purchased on account, $408,000.
Direct material issued to Job #4263 cost $327,600; indirect material issued for that job cost $24,920. Direct material costing $3,740 was issued to start production of Job #4264.
Direct labor hours worked on Job #4263 were 3,600. Direct labor hours for Job #4264 were 120. All direct labor employees were paid $30 per hour.
Other actual factory overhead costs incurred for the month totaled $137,400. This overhead consisted of $36,000 of supervisory salaries, $43,000 of depreciation charges, $14,400 of insurance, $25,000 of indirect labor, and $19,000 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect labor charges were accrued.
Overhead is applied to production at the rate of $36 per direct labor hour.

Beginning balances of Raw Material Inventory and Work in Process Inventory were, respectively, $8,600 and $22,800. Of the beginning WIP balance, $1,600 was related to Job #4263. Job #4263 was completed during April.

a. Prepare journal entries for Transactions 1–5.

Note: List any multiple debits or any multiple credits in alphabetical order by account name.

	Account	Debit	Credit
1	Answer	Answer	Answer
	Answer	Answer	Answer
	To record raw materials purchased on account
2	Answer	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	To record the direct materials issued
3	Answer	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	To record the labor costs
4	Answer	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	To record actual overhead costs
5	Answer	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
	To record the application of OH

b. Determine the balance in Raw Material Inventory at the end of the month. $Answer

c. Determine the balance in Work in Process Inventory at the end of the month. $Answer

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.