Problem -
Donald 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 $31 per machine-hour in 2014). The following data (in millions) show operation costs for 2014:
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Materials Control, beginning balance, January 1, 2014
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$18
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Work-in-Process Control, beginning balance, January 1, 2014
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$9
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Finished Goods Control, beginning balance, January 1, 2014
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$10
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Materials and supplies purchased on credit
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$154
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Direct materials used
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$152
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Indirect materials (supplies) issued to various production departments
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$19
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Direct manufacturing labor
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$96
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Indirect manufacturing labor incurred by various production departments
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$34
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Depreciation on plant and manufacturing equipment
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$28
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Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts)
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$13
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Manufacturing overhead allocated, 3,000,000 actual machine-hours
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?
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Cost of goods manufactured
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$298
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Revenues
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$410
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Cost of goods sold
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$294
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1. 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?
2. 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.
3. How did Donald Transport perform in 2014?
Save your assignment as a Microsoft Excel document.
Accounts -
- Materials Control
- Work-in-Process Control
- Finished Goods Control
- Cost of Goods Sold
- Manufacturing Department Overhead Control
- Manufacturing Overhead Allocated
- Accounts Payable Control
- Wages Payable Control
- Accumulated Depreciation
- Various Liabilities
- Accounts Receivable Control
- Revenues