maninder1122
Jun 1, 2008, 01:51 PM
1) GH Inc. is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
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 45,020 machine-hours and incur $180,080 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, $456,940.
• Raw materials were requisitioned for use in production, $463,810 ($429,250 direct and $34,560 indirect).
• The following employee costs were incurred: direct labor, $290,330; indirect labor, $62,260;
and administrative salaries, $153,170.
• Selling costs, $134,300.
• Factory utility costs, $14,700.
• Depreciation for the year was $127,240 of which $121,240 is related to factory operations and $6,000 is related to selling and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 48,420 machine-hours.
• Sales for the year totaled $1,281,460
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 45,020 machine-hours and incur $180,080 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, $456,940.
• Raw materials were requisitioned for use in production, $463,810 ($429,250 direct and $34,560 indirect).
• The following employee costs were incurred: direct labor, $290,330; indirect labor, $62,260;
and administrative salaries, $153,170.
• Selling costs, $134,300.
• Factory utility costs, $14,700.
• Depreciation for the year was $127,240 of which $121,240 is related to factory operations and $6,000 is related to selling and administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 48,420 machine-hours.
• Sales for the year totaled $1,281,460