**Accounting Journal Entries**7. **___________________________** **___________________________** **___________________________** *(To record factory depreciation)*8. **___________________________** **___________________________** **___________________________** *(To apply manufacturing overhead)*9. **___________________________** **___________________________** **___________________________** *(To record transfer of completed products to finished goods)* **Oberti Guitar Company: Operations Overview**Oberti Guitar Company specializes in high-quality, customized guitars. The company implements a job order costing system due to the handmade nature of their products and applies overheads based on direct labor hours. At the start of the year, estimated manufacturing overhead costs were projected to be $300,000, with an estimated 20,000 direct labor hours worked. By year-end, Oberti's founder and CEO, Anthony, provided the following details regarding the company's operational activities:1. **Beginning Inventory Balances:** - **Raw Materials Inventory:** $8,000 - **Work in Process Inventory:** $26,000 - **Finished Goods Inventory:** $32,0002. **Raw Material Purchases:** - During the year, the company purchased raw materials totaling $97,000. All purchases were made on account.3. **Raw Materials Requisitioned:** - The production department requisitioned $100,000 in raw materials for production. Of this amount, 70% were direct materials, and 30% were indirect materials.4. **Direct Labor Hours:** - The company utilized 21,000 direct labor hours at a rate of $14 per hour during the year, credited to Wages Payable.5. **Indirect Labor Hours:** - 6,500 indirect labor hours were used at a rate of $10 per hour, credited to Wages Payable.6. **Factory Expenses:** - Payments made for insurance, utilities, and property taxes on the factory amounted to $178,000.7. **Factory Depreciation:** - The company recorded factory depreciation expense of $40,000.8. **Application of Overhead:** - Manufacturing overhead was applied to inventory based on the 21,000 direct labor hours worked during the year.9. **Completion of Products:** - Products costing $665,000 were completed and transferred to Finished Goods Inventory during the year.10. **Sales:** - The company sold products at a total cost of $672,000.11. **Overhead Adjustments:** - The company adjusts for under- or overapplied overhead by closing it out to the Cost of Goods Sold.This comprehensive overview highlights the key financial activities and inventory movements within Oberti Guitar Company during the specified year.

Name: **Accounting Journal Entries**7. **___________________________**
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **Accounting Journal Entries**7. **___________________________** **___________________________** **___________________________** *(To record factory depreciation)*8. **___________________________** **_______________________