Post the transactions in the T accounts using the chart accounts given Part 1.Rhiner Corporation is a manufacturer that uses job-order costing. On January 1, thecompany's inventory balances were as follows:Raw materialsWork in processFinished goods$42,000$20,000$36,000The company applies overhead cost to jobs on the basis of direct labor-hours. For thecurrent year, the company's predetermined overhead rate of $16.50 per direct labor-hour was based on a cost formula that estimated $660,000 of total manufacturingoverhead for an estimated activity level of 40,000 direct labor-hours. The followingtransactions were recorded for the year:Raw materials were purchased on account, $520,000.Raw materials used in production, $465,000. All of the raw materials were usedas direct materials.The following costs were accrued for employee services: direct labor, $605,000,indirect labor, $150,000, selling and administrative salaries, $240,000.Incurred various selling and administrative expenses (e.g., advertising, salestravel costs, and finished goods warehousing), $357.000.• Incurred various manufacturing overhead costs (e g., depreciation, insurance,and utilities), $505,000.• Manufacturing overhead cost was applied to production. The company actuallV.worked 42,000 direct labor-hours on all jobs during the year.Jobs costing $1,685,000 to manufacture according to their job cost sheets werecompleted during the year.Jobs were sold on account to customers during the year for a total of $2,750,000.The jobs cost $1,695,000 to manufacture according to their job cost sheets.

Solution: a.) Journal Entry: No. General Journal Debit ($) Credit ($) 1. Work in process…

Rhiner Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $42,000 $20,000 $36,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For th current year, the company's predetermined overhead rate of $16.50 per direct labor- nour was based on a cost formula that estimated $660,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following ransactions were recorded for the year. Raw materials were purchased on account, $520,000. Raw materials used in production, $465,000. All of the raw materials were us as direct materials. The following costs were accrued for employee services: direct labor, $605,0 indirect labor, $150,000, selling and administrative salaries, $240,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $357,000. Incurred various manufacturing overhead costs (e g., depreciation, insuranc and utilities), $505,000. • Manufacturing overhead cost was applied to production. The company actu worked 42,000 direct labor-hours on all jobs during the year.

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Post the transactions in the T accounts using the chart accounts given

Part 1.
Rhiner Corporation is a manufacturer that uses job-order costing. On January 1, the
company's inventory balances were as follows:
Raw materials
Work in process
Finished goods
$42,000
$20,000
$36,000
The company applies overhead cost to jobs on the basis of direct labor-hours. For the
current year, the company's predetermined overhead rate of $16.50 per direct labor-
hour was based on a cost formula that estimated $660,000 of total manufacturing
overhead for an estimated activity level of 40,000 direct labor-hours. The following
transactions were recorded for the year:
Raw materials were purchased on account, $520,000.
Raw materials used in production, $465,000. All of the raw materials were used
as direct materials.
The following costs were accrued for employee services: direct labor, $605,000,
indirect labor, $150,000, selling and administrative salaries, $240,000.
Incurred various selling and administrative expenses (e.g., advertising, sales
travel costs, and finished goods warehousing), $357.000.
• Incurred various manufacturing overhead costs (e g., depreciation, insurance,
and utilities), $505,000.
• Manufacturing overhead cost was applied to production. The company actuallV.
worked 42,000 direct labor-hours on all jobs during the year.
Jobs costing $1,685,000 to manufacture according to their job cost sheets were
completed during the year.
Jobs were sold on account to customers during the year for a total of $2,750,000.
The jobs cost $1,695,000 to manufacture according to their job cost sheets.

Expert Solution

Step 1

Solution:

a.) Journal Entry:

No.	General Journal	Debit ($)	Credit ($)
1.	Work in process	480,000
	Raw materials		480,000
	(To record the raw materials used in production)

b.) The ending balance in Raw Materials:

Raw materials:
Begging balance	$40,000
Add:	$510,000
Less: Raw materials used in production	- $480,000
Ending balance	$70,000

c. ) The journal entry to record the labor costs during the year:

No.	General Journal	Debit ($)	Credit ($)
1	Salaries and administrative salaries	240,000
	Manufacturing overhead	150,000
	Work in process	600,000
	Wages payable		990,000
	(To record the labor cost incurred)

d.) The total amount of manufacturing overhead applied to production during the year:-

Manufacturing overhead applied = $16.25 × 41,000 hours

= $666,250

e.) The total manufacturing costs added to work in process during the year:-

Raw materials	$480,000
Direct labor	$600,000
Manufacturing overhead	$666,250
Cost added to work in process	$1,746,250

f.) Journal Entry:

No.	General Journal	Debit ($)	Credit ($)
1.	Finished goods	1,680,000
	Work in process		1,680,000
	(To record the transfer of completed jobs)

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