Question

Christopher's Custom Cabinet Company uses a job order cost system with ove Inventory balances at the beginning of 2018 follow tage of direct labor costs. 21.2 The following transactions occurred during January Purchased materials on account for $27100 poissued materials to production totaling $21.400 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials Payroll costs totaling $17.800 were recorded as follows: S o for assembly workers 2.800 for factory supervision 2400 for administrative personnel 1,500 for sales commissions Recorded depreciation: $4,600 for factory machines. $1,200 for the color used in the administrative office Recorded $1.900 of expred insurance. Forty percent was orance on the manufacturing face with the remainder classified as an administrative expense Pald 55.300 in other factory costs in cash Applied manufacturing overhead rate of 200 percent of direct labor cost Completed al jobs but on the job cost shoot for the uncompleted job shows $2.200 for direct materials, $2.100 for direct labor and $4200 for oplied overhead Sold jobs costing $51,700. The revenue oamed on those jobs was $67,210 Required: 1 Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: a Raw Materials Inventory b. Work in Process Inventory Finished Goods Inventory d. Cost of Goods Sold e Manufacturing Overhead 1. Selling General, and Administrative Expenses g. Sales Revenue 2. Determine how much gross profit the company would report during the month of January before any ustment is made for Overhead balance a. Determine the amount of over- or underapplied overhead 4. Compute ajusted gross proftasuming that any over- or underapplied overhead balance is adjusted directly to cost of Goods Sold Complete this question by entering your answers in the tales below. Se e u record the beginning port the January actions and come the final balance for the following out all c hed Goodstvary d. Cort of Goods Bold acturing Overhead Can and A . i ve Expenses

Answer 1

1.

Raw Materials Inventory
Beg. bal.	15,000	b.	21,400
a.	27,100
End. bal.	20,700
Work in Process Inventory
Beg. bal.	5,600	h.	49,660
b.	19,260
c.	11,100
g.	22,200
End. bal.	8,500
Finished Goods Inventory
Beg. bal.	21,200	i.	51,700
h.	49,660
End. bal.	19,160
Cost of Goods Sold
Beg. bal.	0
i.	51,700
Manufacturing Overhead
Beg. bal.	0	g.	22,200
b.	2,140
c.	2,800
d.	4,600
e.	760
f.	5,300
Total	15,600
Bal.	6,600
	22,200
Selling, General and Administrative Expenses
Beg. bal.	0
c.	3,900
d.	1,200
e.	1,140
	6,240
Sales Revenue
Beg. bal.			0
i.			67,210
			67,210

2.

Unadjusted Gross Profit

$ 15,510

Gross profit = $ 67,210 - $ 51,700 = $ 15,510

3.

Manufacturing Overhead

$ 6,600

overapplied

4.

Adjusted Gross Profit

$ 22,110