Brown Company makes copper fire pits. Each job is unique in size and design. Brown has provided you with the following January 1, 2014 account balances. During 2014, the following transactions occurred:
1. Brown purchased raw materials for $125,000 on account.
2. Brown used $150,000 of raw materials in production. Ninety percent were direct materials and 10 percent were indirect materials.
3. $72,000 of direct labor and $30,000 of indirect labor was incurred and paid.
4. Other manufacturing overhead incurred and paid totaled $55,000.
5. Brown completed production on goods costing $275,000
6. Brown’s sales revenue was $520,000. All goods were sold on account.
7. Brown cost of goods sold was $330,000 before adjusting for over-/under-applied overhead.
8. Brown applies overhead at 150% of direct labor cost.
9. Brown collected $530,000 from customers and paid $140,000 to vendors.
10. Brown 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

Brown Company makes copper fire pits. Each job is unique in size and design. Brown has provided you with the following January 1, 2014 account balances.     During 2014, the following transactions occurred:
1.	Brown purchased raw materials for $125,000 on account.
2.	Brown used $150,000 of raw materials in production. Ninety percent were direct materials and 10 percent were indirect materials.
3.	$72,000 of direct labor and $30,000 of indirect labor was incurred and paid.
4.	Other manufacturing overhead incurred and paid totaled $55,000.
5.	Brown completed production on goods costing $275,000
6.	Brown’s sales revenue was $520,000. All goods were sold on account.
7.	Brown cost of goods sold was $330,000 before adjusting for over-/under-applied overhead.
8.	Brown applies overhead at 150% of direct labor cost.
9.	Brown collected $530,000 from customers and paid $140,000 to vendors.
10.	Brown 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 	Brown Company makes copper fire pits. Each job is unique in size and design. Brown has provided you with the following January 1, 2014 account balances.     During 2014, the following transactions occurred:
1.	Brown purchased raw materials for $125,000 on account.
2.	Brown used $150,000 of raw materials in production. Ninety percent were direct materials and 10 percent were indirect materials.
3.	$72,000 of direct labor and $30,000 of indirect labor was incurred and paid.
4.	Other manufacturing overhead incurred and paid totaled $55,000.
5.	Brown completed production on goods costing $275,000
6.	Brown’s sales revenue was $520,000. All goods were sold on account.
7.	Brown cost of goods sold was $330,000 before adjusting for over-/under-applied overhead.
8.	Brown applies overhead at 150% of direct labor cost.
9.	Brown collected $530,000 from customers and paid $140,000 to vendors.
10.	Brown 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.

Brown Company Makes Copper Fire Pits