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transactions occurred in October: a. Raw materials purchased on account, $ 209,000. b. Raw materials used in production, $190,000 ($152, 000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $ 49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105, 000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine - hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing $513,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 24% above cost. Required: Prepare journal entries to record the transactions given above. Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Required 1 Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000.

transactions occurred in October: a. Raw materials purchased on account, $ 209,000. b. Raw materials used in production, $190,000 ($152, 000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $ 49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105, 000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine - hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing $513,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 24% above cost. Required: Prepare journal entries to record the transactions given above. Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Required 1 Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Manufacturing Overhead Required 1 Required 2 Beginning balance a. b. C. d. Ending balance Debit Credit Beginning balance e. rf. g. Ending balance Debit < Required 1 Work in Process Required 2 > Credit
Transcribed Image Text:Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Manufacturing Overhead Required 1 Required 2 Beginning balance a. b. C. d. Ending balance Debit Credit Beginning balance e. rf. g. Ending balance Debit < Required 1 Work in Process Required 2 > Credit
transactions occurred in October: a. Raw materials purchased on account, $ 209,000. b. Raw materials used in production, $190,000 ($152, 000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $ 49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine - hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing $513,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 24% above cost. Required: Prepare journal entries to record the transactions given above. Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Required 1 Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000.
Transcribed Image Text:transactions occurred in October: a. Raw materials purchased on account, $ 209,000. b. Raw materials used in production, $190,000 ($152, 000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $ 49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine - hour. A total of 76, 300 machine - hours were used in October. g. Jobs costing $513,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 24% above cost. Required: Prepare journal entries to record the transactions given above. Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000. Required 1 Prepare T - accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $36,000.
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