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The Rebroff Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate based on the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost, $186,000; direct materials cost, $155,000. The following transactions took place during the year (all purchases and services were acquired on account): Raw materials purchased, $96,000. b. Raw materials requisitioned for use in production (all direct materials), $88,000. c. Utility bills incurred in the factory, $17,000. d. Costs for salaries and wages incurred as follows: Direct labor, $174,000 Indirect labor, $70,000 Selling and administrative salaries, $124,000 Maintenance costs incurred in the factory, $12,000. f. Advertising costs incurred, $98,000. g. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory and 20% is occupied by sales and administration)

The Rebroff Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate based on the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost, $186,000; direct materials cost, $155,000. The following transactions took place during the year (all purchases and services were acquired on account): Raw materials purchased, $96,000. b. Raw materials requisitioned for use in production (all direct materials), $88,000. c. Utility bills incurred in the factory, $17,000. d. Costs for salaries and wages incurred as follows: Direct labor, $174,000 Indirect labor, $70,000 Selling and administrative salaries, $124,000 Maintenance costs incurred in the factory, $12,000. f. Advertising costs incurred, $98,000. g. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory and 20% is occupied by sales and administration)

FINANCIAL ACCOUNTING
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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The Rebroff Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate based on the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost, $186,000; direct materials cost, $155,000. The following transactions took place during the year (all purchases and services were acquired on account): Raw materials purchased, $96,000. b. Raw materials requisitioned for use in production (all direct materials), $88,000. c. Utility bills incurred in the factory, $17,000. d. Costs for salaries and wages incurred as follows: Direct labor, $174,000 Indirect labor, $70,000 Selling and administrative salaries, $124,000 e. Maintenance costs incurred in the factory, $12,000. f. Advertising costs incurred, $98,000. g. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). Miscellaneous selling and administrative costs incurred, $12,000. i. j. k. 1. Manufacturing overhead cost was applied to jobs. Cost of goods manufactured for the year, $480,000. Sales for the year (all on account) totaled $900,000. These goods cost $550,000 to manufacture Required: Prepare journal entries to record the information above. Key your entries to the letters a through 1.
Transcribed Image Text:The Rebroff Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate based on the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost, $186,000; direct materials cost, $155,000. The following transactions took place during the year (all purchases and services were acquired on account): Raw materials purchased, $96,000. b. Raw materials requisitioned for use in production (all direct materials), $88,000. c. Utility bills incurred in the factory, $17,000. d. Costs for salaries and wages incurred as follows: Direct labor, $174,000 Indirect labor, $70,000 Selling and administrative salaries, $124,000 e. Maintenance costs incurred in the factory, $12,000. f. Advertising costs incurred, $98,000. g. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrative assets). h. Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). Miscellaneous selling and administrative costs incurred, $12,000. i. j. k. 1. Manufacturing overhead cost was applied to jobs. Cost of goods manufactured for the year, $480,000. Sales for the year (all on account) totaled $900,000. These goods cost $550,000 to manufacture Required: Prepare journal entries to record the information above. Key your entries to the letters a through 1.
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