Allenton Company is a manufacturing firm that uses job-order costing.At the beginning of the year,the company's inventory balances were as follows: 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 31,000 machine-hours and incur $248,000 in manufacturing overhead cost.The following transactions were recorded for the year:
a.Raw materials were purchased,$411,000.
b.Raw materials were requisitioned for use in production,$409,000 ($388,000 direct and $21,000 indirect).
c.The following employee costs were incurred: direct labor,$145,000;indirect labor,$61,000;and administrative salaries,$190,000.
d.Selling costs,$148,000.
e.Factory utility costs,$12,000.
f.Depreciation for the year was $121,000 of which $114,000 is related to factory operations and $7,000 is related to selling,general,and administrative activities.
g.Manufacturing overhead was applied to jobs.The actual level of activity for the year was 29,000 machine-hours.
h.The cost of goods manufactured for the year was $783,000.
i.Sales for the year totaled $1,107,000 and the costs on the job cost sheets of the goods that were sold totaled $768,000.
j.The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.
Required:
Prepare the appropriate journal entry for each of the items above (a.through j. ).You can assume that all transactions with employees,customers,and suppliers were conducted in cash.

Question

Allenton Company is a manufacturing firm that uses job-order costing.At the beginning of the year,the company's inventory balances were as follows:  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 31,000 machine-hours and incur $248,000 in manufacturing overhead cost.The following transactions were recorded for the year:
a.Raw materials were purchased,$411,000.
b.Raw materials were requisitioned for use in production,$409,000 ($388,000 direct and $21,000 indirect).
c.The following employee costs were incurred: direct labor,$145,000;indirect labor,$61,000;and administrative salaries,$190,000.
d.Selling costs,$148,000.
e.Factory utility costs,$12,000.
f.Depreciation for the year was $121,000 of which $114,000 is related to factory operations and $7,000 is related to selling,general,and administrative activities.
g.Manufacturing overhead was applied to jobs.The actual level of activity for the year was 29,000 machine-hours.
h.The cost of goods manufactured for the year was $783,000.
i.Sales for the year totaled $1,107,000 and the costs on the job cost sheets of the goods that were sold totaled $768,000.
j.The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.
Required:
Prepare the appropriate journal entry for each of the items above (a.through j. ).You can assume that all transactions with employees,customers,and suppliers were conducted in cash.

Quizplus · Accepted Answer

The Answer of Allenton Company is a manufacturing firm that uses job-order costing.At the beginning of the year,the company's inventory balances were as follows:  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 31,000 machine-hours and incur $248,000 in manufacturing overhead cost.The following transactions were recorded for the year:
a.Raw materials were purchased,$411,000.
b.Raw materials were requisitioned for use in production,$409,000 ($388,000 direct and $21,000 indirect).
c.The following employee costs were incurred: direct labor,$145,000;indirect labor,$61,000;and administrative salaries,$190,000.
d.Selling costs,$148,000.
e.Factory utility costs,$12,000.
f.Depreciation for the year was $121,000 of which $114,000 is related to factory operations and $7,000 is related to selling,general,and administrative activities.
g.Manufacturing overhead was applied to jobs.The actual level of activity for the year was 29,000 machine-hours.
h.The cost of goods manufactured for the year was $783,000.
i.Sales for the year totaled $1,107,000 and the costs on the job cost sheets of the goods that were sold totaled $768,000.
j.The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.
Required:
Prepare the appropriate journal entry for each of the items above (a.through j. ).You can assume that all transactions with employees,customers,and suppliers were conducted in cash.

Allenton Company Is a Manufacturing Firm That Uses Job-Order Costing