Problem:
Job costing, journal entries. Donnell Transport assembles prestige manufactured homes. Its job costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $30 per machine-hour in 2011). The following data (in millions) pertain to operations for 2011:
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Materials Control, beginning balance, January 1, 2011
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$ 12
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Work-in-Process Control, beginning balance, January 1, 2011
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2
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Finished Goods Control, beginning balance, January 1, 2011
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6
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Materials and supplies purchased on credit
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150
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Direct materials used
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145
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Indirect materials (supplies) issued to various production departments
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10
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Direct manufacturing labor
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90
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Indirect manufacturing labor incurred by various production departments
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30
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Depreciation on plant and manufacturing equipment
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19
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Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities,
|
9
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etc., with a corresponding credit to various liability accounts)
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|
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Manufacturing overhead allocated, 2,100,000 actual machine-hours
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?
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Cost of goods manufactured
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294
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Revenues
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400
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Cost of goods sold
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292
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1. Prepare an overview diagram of Donnell Transport's job-costing system. Required
2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control?
3. Show the journal entry for disposing of under- or over allocated manufacturing overhead directly as a year-end write-off to Cost of Goods Sold. Post the entry to T-accounts.