Adams Corporation manufactures stained glass windows. Since each job is unique in color and design, Adams uses a job-order costing system. Adams has provided you with the following January 1, 2014 account balances. During 2014, the following transactions occurred:
1. Adams purchased raw materials for $160,000 on account
2. Adams used $150,000 of raw materials in production. Eighty percent were direct materials and 20 percent were indirect materials.
3. $69,000 of direct labor and $27,000 of indirect labor was incurred and paid.
4. Other manufacturing overhead incurred on account totaled $52,000.
5. Adams completed production on goods costing $280,000.
6. Adams sales revenue was $510,000. All goods were sold on account.
7. Adams’ cost of goods sold was $320,000 before adjusting for over-/under-applied overhead.
8. Adams applies overhead at 200% of direct labor cost.
9. Adams collected $530,000 from customers and paid $140,000 to vendors.
10. Adams closes over-/under-applied overhead to Cost of Goods Sold.

Required:
a. Record the transactions above in the appropriate T-accounts and calculate the ending balances.
b. Calculate total manufacturing costs.

Question

Adams Corporation manufactures stained glass windows. Since each job is unique in color and design, Adams uses a job-order costing system. Adams has provided you with the following January 1, 2014 account balances.     During 2014, the following transactions occurred:
1.	Adams purchased raw materials for $160,000 on account
2.	Adams used $150,000 of raw materials in production. Eighty percent were direct materials and 20 percent were indirect materials.
3.	$69,000 of direct labor and $27,000 of indirect labor was incurred and paid.
4.	Other manufacturing overhead incurred on account totaled $52,000.
5.	Adams completed production on goods costing $280,000.
6.	Adams sales revenue was $510,000. All goods were sold on account.
7.	Adams’ cost of goods sold was $320,000 before adjusting for over-/under-applied overhead.
8.	Adams applies overhead at 200% of direct labor cost.
9.	Adams collected $530,000 from customers and paid $140,000 to vendors.
10.	Adams closes over-/under-applied overhead to Cost of Goods Sold.

Required:
a.	Record the transactions above in the appropriate T-accounts and calculate the ending balances.
b.	Calculate total manufacturing costs.

Quizplus · Accepted Answer

The Answer of Adams Corporation manufactures stained glass windows. Since each job is unique in color and design, Adams uses a job-order costing system. Adams has provided you with the following January 1, 2014 account balances.     During 2014, the following transactions occurred:
1.	Adams purchased raw materials for $160,000 on account
2.	Adams used $150,000 of raw materials in production. Eighty percent were direct materials and 20 percent were indirect materials.
3.	$69,000 of direct labor and $27,000 of indirect labor was incurred and paid.
4.	Other manufacturing overhead incurred on account totaled $52,000.
5.	Adams completed production on goods costing $280,000.
6.	Adams sales revenue was $510,000. All goods were sold on account.
7.	Adams’ cost of goods sold was $320,000 before adjusting for over-/under-applied overhead.
8.	Adams applies overhead at 200% of direct labor cost.
9.	Adams collected $530,000 from customers and paid $140,000 to vendors.
10.	Adams closes over-/under-applied overhead to Cost of Goods Sold.

Required:
a.	Record the transactions above in the appropriate T-accounts and calculate the ending balances.
b.	Calculate total manufacturing costs.

Adams Corporation Manufactures Stained Glass Windows