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Winfrey Co.'s March 31 inventory of raw materials...

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Winfrey Co.'s March 31 inventory of raw materials is $150,000. Raw materials purchases in April are $400,000, and factory payroll cost in April is $220,000. Overhead costs incurred in April are: indirect materials, $30,000; indirect labor, $14,000; factory rent, $20,000; factory utilities, $12,000; and factory equipment depreciation, $30,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $380,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct materials $14,000 $18,000 Direct labor 18,000 16,000 Applied overhead 9,000 8,000 Costs during April Direct materials 100,000 170,000 80,000 Direct labor 30,000 56,000 120,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process a.Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.) b.Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory. c.Transfer of Jobs 306 and 307 to the Finished Goods Inventory. d.Cost of goods sold for Job 306. e.revenue from the sale of Job 306. f.Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 2.Prepare journal entries for the month of April to record the above transactions a. Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.) b. Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory. c. Transfer of Jobs 306 and 307 to the Finished Goods Inventory. d. Cost of goods sold for Job 306. e. Revenue from the sale of Job 306. f. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 2. Prepare journal entries for the month of April to record the above transactions Compute gross profit for April. Gross profit $____________ Show how to present the inventories on the April 30 balance sheet. Inventories Raw materials $__________ Goods in process (Job 308) ___________ Finished goods (Job 307) _________- Total inventories $____________

 

Paper#7808 | Written in 18-Jul-2015

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