### Inventory Balances of Sangvikar Company as of April 1- **Materials Inventory:** $12,730- **Work-in-Process Inventory:** $21,340- **Finished Goods Inventory:** $8,700The Work-in-Process Inventory consists of costs from three jobs:| Job Number | Direct Materials | Direct Labor | Applied Overhead ||------------|------------------|--------------|------------------|| Job 114 | $2,411 | $1,800 | $1,170 || Job 115 | $2,640 | $1,560 | $1,014 || Job 116 | $3,650 | $4,300 | $2,795 |### Transactions in Aprila. **Materials Purchased on Account:** $29,000b. **Materials Requisitioned:** - Job 114: $16,500 - Job 115: $12,200 - Job 116: $5,000c. **Job Tickets Collected and Summarized:** - Job 114: 150 hours @ $12/hour - Job 115: 220 hours @ $14/hour - Job 116: 80 hours @ $18/hourd. **Overhead Application:** Overhead is applied based on direct labor cost.e. **Actual Overhead:** $4,415f. **Completion and Transfer:** Job 115 was completed and transferred to the finished goods warehouse.g. **Shipment and Billing:** - Job 115 was shipped. - The customer was billed for 125% of the cost. **1. Prepare journal entries for the April transactions.***Note: The image contains only the instruction text in a bold format. No graphs or diagrams are present.*

The overhead is applied to the production on the basis of predetermined overhead rate. The predetermined overhead rate is calculated as total estimated overhead cost divided by estimated base activity. JOURNAL S. No Particulars Debit Amt $ Credit amt $ a. Materials 29,000 Accounts payable 29,000 (To record purchase of materials) b. Work in process - Job 114 16,500 Work in process - Job 115 12,200 Work in process - Job 116 5,000 Materials 33,700 (To record requisition of materials) c. Work in process - Job 114 (150 * $12) 1,800 Work in process - Job 115 (220 * $14) 3,080 Work in process - Job 116 (80 * $18) 1,440 Wages payable 6,320 (To record direct labor cost) d. Work in process - Job 114 (1800 * 0.65) 1,170 Work in process - Job 115 (3,080 * 0.65) 2,002 Work in process - Job 116 (1440 * 0.65) 936 Manufacturing overhead (65% * $6,320) 4,108 (To record overhead Applied) e. Manufacturing overhead 4,415 Accounts payable 4,415 (To record actual overhead cost) f. Finished goods inventory 22,496 Work in process - Job 115 22,496 (To record cost job 115 finished) g. Accounts receivables 28,120 Sales revenue (22,496 * 125%) 28,120 (To record sale of Job 115) Cost of goods sold 22,496 Finished goods inventory 22,496 (To record cost of job 115 sold) For Beginning WIP - Job 114, Overhead Applied = $1170 Direct Labor cost = $1800 Predetermined overhead rate = 1170 / 1800 = 0.65 = 65% of Direct labor cost Calculation of cost of Job 115 Beginning WIP (2,640+1,560+1,014) $5,214 Direct materials used 12,200 Direct Labor cost 3,080 Overhead Applied (3,080 * 0.65) 2,002 Total cost of Job 115 $22,496

Business

Accounting

On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Work-in-process inventory is made up of three jobs with the following costs: Direct materials Direct labor Job 114 $2,411 1,800 $12,730 21,340 8,700 1,170 Job 115 $2,640 1,560 1,014 Job 116 $3,650 4,300 2,795 Applied overhead During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $29,000. b. Materials requisitioned: Job 114, $16,500; Job 115, $12,200; and Job 116, $5,000. c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 220 hours at $14 pe hour; and Job 116, 80 hours at $18 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,415. f. Job 115 was completed and transferred to the finished goods warehouse. g. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.

On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory Work-in-Process Inventory Finished Goods Inventory Work-in-process inventory is made up of three jobs with the following costs: Direct materials Direct labor Job 114 $2,411 1,800 $12,730 21,340 8,700 1,170 Job 115 $2,640 1,560 1,014 Job 116 $3,650 4,300 2,795 Applied overhead During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $29,000. b. Materials requisitioned: Job 114, $16,500; Job 115, $12,200; and Job 116, $5,000. c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 220 hours at $14 pe hour; and Job 116, 80 hours at $18 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,415. f. Job 115 was completed and transferred to the finished goods warehouse. g. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.

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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