Question

Need help with incorrect entries, also need complete answer with explanation if possible for 3B, along with remaining entries for 4. Thank you!!!

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate com 1 The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $92,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: 25 $10,500 $ 4,200 $ 8,700 Raw materials points Work in process Finished goods During the year, the following transactions were completed: a. Raw materials purchased on account, $164,000. b. Raw materials used in production, $149,000 (materials costing $130,000 were charged directly to jobs; the remaining materials were indirect). C. Costs for employee services were incurred as follows: Direct labor $152,000 $272,800 29,000 $ 43,000 Indirect labor Sales commissions Administrative salaries d. Rent for the year was $18,700 ($13,900 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $13,000. f. Advertising costs incurred, $10,000. g. Depreciation recorded on equipment, $21,000. ($17,000 of this amount related to equipment used in factory operations; the remaining $4,000 related to equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $? i. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. r Em u sla a 110- 1 i. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed. J. Sales for the year (all paid in cash) totaled $503,000. The total cost to manufacture these goods according to their job cost sheets was $216,000 Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts). 3A. Is Manufacturing Overhead underapplied or overapplied for the year? 3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 3A Req 2 Req 3B Req 4 Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Debit No Transaction General Journal Credit Raw materials 164,000 1 Cash 164,000 Work in process 2 130,000 b Manufacturing overhead 19,000 149,000 Raw materials Return to que Req 1 Reg 2 Req 3A Req 3B Req 4 Prepare journal entries to record the transactions for the year. (If no entry journal entry required" in the first account field. Do not round intermediate calculations.) required for a transaction/event, select "No Transaction No General Journal Debit Credit Raw materials 164,000 1 a. Cash 164,000 130,000 2 b. Work in process Manufacturing overhead 19,000 Raw materials 149,000 Work in process 152,000 C Manufacturing overhead Administrative salaries expense 272,800 43,000 467,800 x Salaries and wages payable 13,900 Manufacturing overhead 4 d. 4,800 Rent expense Cash 18,700 13,000 5 Manufacturing overhead E Cash x 13.000 10,000 f Advertising expense Cash 10,000 00®| Req 1 Req 2 Req 3A Req 3B Req 4 Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts). (Do not round intermediate calculations.) Raw Materials Work in Process 4,200 Beg. Bal Beg. Bal. 10,500 149,000 b. 130,000 164,000 b. 228,000 a 152,000 C 349,600 h End, Bal. 25,500 End. Bal. 407,800 Finished Goods Manufacturing Overhead Beg. Bal. Beg. Bal. 8,700 19,000 349,600 h. 228,000 349,600 i. b 152,000 13,900 C d End. Bal, 13,000 112.900 17,000 End. Bal. 134,700 Cost of Goods Sold Beg. Bal 349,600 End. Bal. 349,600 Req 1 Req 3A then, and drag to the Favorites Bar folder. Or import from another browser. Import favorites re, select 3: Comprehensive Problemi Saved Help Save & Exi Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to 1 Was 341.Uvu. Required: 1. Prepare journal entries to record the transactions for the year. 2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts). 3A. Is Manufacturing Overhead underapplied or overapplied for the year? 3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4. Prepare an income statement for the year. All of the information needed for the income statement is available and T-accounts you have prepared. ts the journal entries Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 in the Manufacturing Ove first accoun of Goods Sold. (If no entry is Prepare requir Joual eny o iose dny Daldnce ransaction/event, sele ccount to entry required" in the field. General Journal Transaction No Debit Credit Req 3A Req 4> and T-accounts you have prepared. XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Prepare an income statement for the year. (All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.) Gold Nest Company Income Statement For the Year Ended 503.000 Sales Cost of goods sold Gross margin 503,000 Selling and administrative expenses: Sales commissions Administrative salaries expense Rent expense Advertising expense Depreciation expense 0 Net operating income 503,000 Req 4

Answer 1

QUES 1

Transaction	General Journal	Debit	Credit
a.	Raw Materials	$        164,000
	Accounts payable		$        164,000
b.	Work In process	$        130,000
	Manufacturing Overhead	$          19,000
	Raw Materials		$        149,000
c.	Work In process	$        152,000
	Manufacturing Overhead	$        272,800
	Sales Commission Expense	$          29,000
	Salaries Expense	$          43,000
	Cash		$        496,800
d.	Manufacturing Overhead	$          13,900
	Rent Expense	$            4,800
	Cash		$          18,700
e.	Manufacturing Overhead	$            1,300
	Cash		$            1,300
f.	Advertising Expense	$          10,000
	Cash		$          10,000
g.	Maufacturing Overhead	$          17,000
	Depriciation Expense	$            4,000
	Accumulated Depriciaition		$          21,000
h.	Work In process	$        349,600
	Manufacturing Overhead		$        349,600
i.	Finished Goods	$        228,000
	Work In process		$        228,000
j(1)	Cash	$        503,000
	Sales		$        503,000
j(2)	Cost Of goods Sold	$        216,000
	Finished Goods		$        216,000

WORKING

Predetrmine overhead rate=Estimated total manufacturing overhead case/estimated total amount of allocation base
						($92,000/$40,000)		230%	of direct labor cost
						Actual Labor cost=$152,000
Overheads=$152,000 * 230%			349600

QUES 2

T-ACCOUNTS

Raw Materials					Work In process
Beg. Bal.	10500	b.	149000		Beg. Bal.	4200	i.	228000
a.	164000				b.	130000
					c.	152000
Ending Bal.	25500				h.	349600
					Ending Bal.	407800
Finished Goods
Beg Bal.	8700	j.	216000		Manufacturing Overhead
i.	228000				b.	19000	h.	349600
Ending Bal.	20700				c.	272800
					d.	13900
Cost Of goods sold					e.	1300
j.	216000				g.	17000
							Ending Bal.	25600
Ending Bal.	216000

QUES 3

3-a	Manufacturing overhead overapplied
3-b	Manufacturing overhead	$          25,600
	Cost of goods sold		$          25,600

QUES 4

Income Statement
Sales		$      503,000
Less
Cost of goods Sold	$     216,000
	$     (25,600)	$      190,400
Gross Margin		$      312,600
Selling and admn. Expenses
Sales Commission Expense	$        29,000
Salaries Expense	$        43,000
Rent expense	$          4,800
Advertising expense	$        10,000
depriciation expense	$          4,000	$         90,800
Net operating income		$      221,800