short Answer Problem 2: Allenton Company is a manufacturing frm that uses job-or
ID: 2412962 • Letter: S
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short Answer Problem 2: Allenton Company is a manufacturing frm that uses job-order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work an estimated 31,000 machine-hours and incur an estimated $248,000 in manufacturing overhead cost. The following are some transactions were recorded for the year of the A Raw B. The total raw materials were requisitioned for use in production was $408 $388,000 was for direct and $21,000 was for indirect C. The following employee indirect labor, $61,000. materials were purchased. The purchase as for $411,000 and was paid for in Cash. ,000 of which costs were incurred and paid for in cash: direct labor, $145,000; D. Manufacturing overhead was applied to jobs using a predetermined rate. The actual level of activity for the year was 29,000 machine-hours E. Total goods completed and transferred to finished goods amounted to $15,000 Required Prepare the appropriate journal entry for each of the items above (A through F. 26 (For A): 27 (For B): 28 (For C) 29 (For D): 30 (For E): 10Explanation / Answer
S. No. Accounts and Explanation Debit $ Credit $ a) Raw material were purchased Raw material inventory 411000 Accounts payable 411000 b)Raw material requisitioned for use in production Work-in-progress 388000 Manufacturing over head 21000 Raw materials 409000 C) costs were incurred for employees services Work-in-progress 145000 Manufacturing over head 61000 Salaries and wages payable 206000 g)Manufacturing overheads was applied to jobs Work-in-progress 23200 Manufacturing overhead ($248000/31000*29000) 232000 h)Cost of goods manufactured for the year Finished goods 556200 Work-in-progress 556200 Manufacturing Overehed 82000
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