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    Xomaddie7's Avatar
    Xomaddie7 Posts: 1, Reputation: 1
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    #1

    Sep 14, 2012, 06:22 PM
    Accounting help
    Problem 2-25A Journal Entries; T-Accounts; Financial Statements [LO1, LO2, LO3, LO4, LO5, LO6, LO7]
    Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $215,600 of manufacturing overhead for an estimated allocation base of $154,000 direct material dollars.

    The following transactions took place during the year (all purchases and services were acquired on account):

    a. Raw materials purchased, $142,000.
    b. Raw materials requisitioned for use in production (all direct materials), $147,000.
    c. Utility bills incurred in the factory, $21,000.
    d. Costs for salaries and wages were incurred as follows:


    Direct labor $ 216,000
    Indirect labor $ 64,300
    Selling and administrative salaries $ 143,000

    e. Maintenance costs incurred in the factory, $23,000.
    f. Advertising costs incurred, $121,000.
    g.
    Depreciation recorded for the year, $50,000 (80% relates to factory assets, and the remainder relates to selling and administrative assets).
    h.
    Rental cost incurred on buildings, $89,000 (70% of the space is occupied by the factory, and 30% is occupied by sales and administration).
    I. Miscellaneous selling and administrative costs incurred, $12,000.
    j. Manufacturing overhead cost was applied to jobs, $ ?
    k.
    Cost of goods manufactured for the year, $553,000.
    l.
    Sales for the year (all on account) totaled $1,400,000. These goods cost $510,000 according to their job cost sheets.

    The balances in the inventory accounts at the beginning of the year were as follows:


    Raw Materials $ 19,000
    Work in Process $ 27,000
    Finished Goods $ 40,000
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Sep 15, 2012, 03:01 AM
    And what is it you would like to know, we don't supply model answers, which might incidentally be found in the back of the text book.

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