Question

SoTech manufacters staplers using a normal costing system, allocates overhead based on direct labor cost, and treats any over or under applied overhead as being immaterial. Estimated direct labor for the year is $405,000 while actual direct labor for the year was $412,000. Estimated overhead for the year is $384,750. During June, the company’s accounts included the following balances and transactions:

Note: T accounts are supposed to be used for this problem. Raw materials, work in process, finished goods, cost of goods sold and manufacter overhead. I’m trying to work this problem but I’m stumped I think I figured out the RM as $5300.

SoTech manufactures staplers using a normal costing system, allocates overhead based on direct labor cost, and treats any over or underapplied overhead as being immaterial. Estimated direct labor for the year is $405,000 while actual direct labor for the year was $412,000. Estimated overhead for the year is $384,750. During June, the company’s accounts included the following balances and transactions $14,200 2,500 2,600 5,300 3,100 13,500 11,200 12,400 4,500 9,600 1,900 $35,000 Depreciation on factory building 365,000 Product advertising costs Direct labor cost incurred Sales Maintenance on assembly machines Direct materials used in production Factory equipment rent Product selling costs Indirect materials transferred to production Material storeroom clerk’s wages Sales salaries Cost of materials purchased Factory janitorial costs 2,700 Factory utilities 122,000 Production supervisor’s salary 1,700 Cost to ship goods to customers 23,000 Work in process, beginning 1.200 Finished goods, ending 1.400 Work in process, ending 14.200 Raw materials, beginning 124,400 Finished goods, beginning 1,600 Factory insurance Post all amounts to the respective t-accounts amounts. shown below. Calculate and post any balances or missing transaction WIP FG RM



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