Robinson Corporation constructs new homes. Assume that Robinson uses a job-order costing system. During July, the following transactions occurred:Robinson purchased $4,500 of lumber on account.Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor at $15 per hour.Depreciation of $1,500 on equipment used to build new houses was recorded.A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.The journal entry to record the requisition of lumber for Robinson would include a a. credit to Finished Goods of $3,750. b. debit to Materials Inventory of $3,750. c. debit to Work in Process of $4,500. d. debit to Work in Process of $3,750.
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Robinson purchased $4,500 of lumber on account.
Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
The
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- During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.A company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?The following transactions occurred during the month of April for Nelson Company:a. Purchased materials costing $4,610 on account.b. Requisitioned materials totaling $4,800 for use in production, $3,170 for Job 518 and theremainder for Job 519.c. Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month.Direct laborers are paid at the rate of $14 per hour.d. Applied overhead using a plantwide rate of $6.20 per direct labor hour.e. Incurred and paid in cash actual overhead for the month of $973.f. Completed and transferred Job 518 to Finished Goods.g. Sold on account Job 517, which had been completed and transferred to Finished Goodsin March, for cost ($2,770) plus 25%.Required:1. Prepare journal entries for Transactions a through e.2. Prepare job-order cost sheets for Jobs 518 and 519. Prepare journal entries forTransactions f and g. (Note: Round to the nearest dollar.)3. Prepare a schedule of cost of goods manufactured for April. Assume that the…
- Olson Corporation constructs new homes. Assume that Olson uses a job costing system. During May of the current year, the following transactions occurred: Olson purchased $4,500 of lumber on account. Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. Depreciation of $1,500 on equipment used to build new houses was recorded. A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash. The transaction to record labor for Olson would include a (an): Group of answer choices Decrease to Finished Goods of $750 Decrease to Wages Payable of $750 Increase to Finished Goods of $750 Increase to Work-in-Process of $750During March, the following transactions/events were reported by Jerico Company that uses job- order costing for its product costing purpose: Depreciation on production machines and equipment, $10,500 Insurance on the plant assets, $2,700 Property taxes on the factory building accrued during the month, $4,000 Advertising paid with cash, $8,200 Which of the following accounts should NOT appaer in your journal entries to record the above transactions? O Depreciation Expense O Prepaid Insurance O Taxes Payable O Advertising (or Selling) ExpenseBarker Products is a job shop. The following events occurred in September: Purchased $14,500 of materials on account. Issued $16,000 in direct materials to the production department. Purchased $12,500 of materials on account. Issued $975 of supplies from the materials inventory. Paid for the materials purchased in transaction (1). Paid $20,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. Incurred direct labor costs of $25,000, which were credited to Wages Payable. Issued $1,375 of supplies from the materials inventory. Applied overhead on the basis of 85 percent of $25,000 direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $13,100. The following balances appeared in the accounts of Barker Products for September Beginning Ending Materials Inventory $ 36,200 ? Work-in-Process Inventory 6,250 ? Finished Goods Inventory 36,500 $ 32,500…
- During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on account, $300 in factory depreciation expense, and $100 in property tax on the factory. Prepare journal entries for the following: Record the expenses incurred. Date To record overhead expenses. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour. Date To allocate manufacturing overhead to work in process inventory. Note: Account titles are important! Using the proper account is vital in accounting. For this question use the following account titles: Accounts Payable Accumulated Depreciation Manufacturing Overhead Property Taxes Payable Work In Process InventoryAt the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,510,000. The manager also estimated the following overhead costs for the year. Indirect labor. Rent on factory building Factory utilities Depreciation-Factory equipment Repairs expense-Factory equipment Indirect materials Total estimated overhead costs For the year, the company incurred $1,523,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $605,000; Job 202, $564,000; Job 203, $299,000; Job 204, $717,000; and Job 205, $315,000. In addition, Job 206 is in process at the end of the year and had been charged $18,000 for direct labor. No jobs were in process at the beginning of the year. The company's predetermined overhead rate is based on a percent of direct labor cost. Required 1-a. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six jobs during the year. 1-c. Determine…During the current month, Sheridan Company incurs the following manufacturing costs. (a) Purchased raw materials of $17,700 on account. (b) Incurred factory labor of $38,400. (c) Factory utilities of $3,200 are payable, prepaid factory property taxes of $2,660 have expired, and depreciation on the factory building is $9,600. Record the company's manufacturing costs in its job order costing system. Purchased raw materials Incurred factory labor Factory utilities Factory property taxes Factory depreciation Balance $ LA $ Raw Materials Inventory $ $ Manufacturing Costs Factory Labor Manufacturing Overhead $
- During the current month, Carla Vista Company incurs the following manufacturing costs. (a) Purchased raw materials of $22,000 on account. (b) Incurred factory labor of $47,200. (c) Factory utilities of $3.390 are payable, prepaid factory insurance of $3,110 have expired, and depreciation on the factory building is $11.400. Prepare journal entries for each type of manufacturing cost. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (b) (Purchases of raw materials on account) Debit 100 Credit 10Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 6,000 Direct labor $ 20,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $ 8,000 Indirect labor $ 12,000 Production supervisor's salary $ 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: Purchased $79,000 of materials. Paid $84,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Issued $5,900 of supplies from the materials inventory. Issued $87,000 in direct materials to the production department. Incurred direct labor costs of $77,000, which were credited to Wages Payable. Paid for the materials purchased in transaction (1). Incurred $14,000 in indirect labor costs, which were credited to Wages Payable. Applied overhead on the basis of 155 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $18,100. Returned $1,220 of the materials in transaction (3) to inventory. Paid the for the wages incurred in transaction (5). The following balances appeared in the accounts of Ervin…