Question

Hogle Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal year, the company's inventory balances were as follows: Raw materials ...... Work in process ....... Finished goods ....... $20,000 $15,000 $30,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours. The following transactions were recorded for the year: 1) Raw materials were purchased on account, $410,000. 2) Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials). 3) The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000; sales commissions, $90,000; and administrative salaries, $200,000. 4) Sales travel costs were $17,000. 5) Utility costs in the factory were $43,000. 6) Advertising costs were $180,000. 7) Depreciation was recorded for the year, $350,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). 8) Insurance expired during the year, $10,000 (70% relates to factory operations, and the remaining 30% relates to selling and administrative activities). 9) Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours on all jobs during the year. 10) Goods costing $900,000 to manufacture according to their job cost sheets were completed during the year. 11) Goods were sold on account to customers during the year for a total of $1,500,000. The goods cost $870,000 to manufacture according to their job cost sheets.

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 1 Wrap Text Merge & Center - 3 LE Paste Format Painter Clipboard Autosum * Calibri BI U - 11 - A A ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1 Δ Α 1 2 S.No. ELEG H I K L for Hogle Corporation B Hogle Corporation General,Journal Raw Material To Accounts Payable (Being amount of Raw Material purchased on credit) Credit Debit $ 4,10,000.00 4,10,000.00 va Low- $ 3,60,000.00 $ 20,000.00 Work in Process Manufacturing Overhead To Raw Materials (Being amount of Raw material requisitioned for use in production) 3,80,000.00 11 Work in Process Manufacturing Overhead Sales Commission Administrative Salaries To Salaries and Wages Payable (Being amount of cost were incurred for employee services) $ 75,000.00 $ 1,10,000.00 $ 90,000.00 $ 2,00,000.00 4,75,000.00 NEBEEEEEEEEF E 18 $ 17,000.00 17,000.00 21 19 4) Sales Travel Expense To Accounts Payable (Being amount of sales travel cost) 22 23 (5) Manufacturing Overhead M Sheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste | $ 43,000.00 K Average: 376440.048 Count: 363 Sum: 47055006 OU 100% + 0 11:34 07-02-2020 PAO ENG W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri -11 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 LE Paste Format Painter Clipboard Autosum * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells Hi 235) foc Hogle Corporation B Manufacturing Overhead To Accounts Payable (Being amount of Utility cost in the Factory) $ 43,000.00 24 43,000.00 26 $ 1,80,000.00 28 Advertisement Expense To Accounts Payable (Being amount of Advertisement Expenses) 1,80,000.00 29 30 31 7 $ 2,80,000.00 $ 70,000.00 33 Manufacturing Overhead($350000*80%) Depreciation Expense($350000*20%) To Accumulated Depreciation (Being amount of Depreciation 80% realted to factory operation and 20% realated to selling and administrative expense) 3,50,000.00 34 35 36 8) $ $ 7,000.00 3,000.00 Manufacturing Overhead($10000*70%) Insurance Expense($10000*30%) To Prepaid Insurance (Being amount of Insurance Expired 70% relating to factory operation and 30% related to selling and administrative) 10,000.00 39 $ 4,80,000.00 41 9)(*) 42 43 Work in Process To Manufacturing Overhead (Being amount of manufacturing overhead applied) 4,80,000.00 44 Sheet1 Sheet2 Sheet3 Ready Average: 376440.048 Count: 363 Sum: 47055006 OU 100% + 0 11:34 07-02-2020 PAO ENG W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy = = = General Calibri -11 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 LE Paste Format Painter Clipboard Autosum * Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells for Hogle Corporation A1 Α ΓΔ Hi 44 45 10) $ 9,00,000.00 46 Finished Goods To Work in Process (Being amount of Work in Process transferred to Finished Goods) 9,00,000.00 49 11) $ 15,00,000.00 Accounts Receivable To Sales (Being amount of Sales on credit) 15,00,000.00 53 (11) $ 8,70,000.00 Cost of goods sold To Finished Goods (Being amount of finished goods transferred to Cost of goods sold) 8,70,000.00 Predetermined Overhead rate=Estimated total amount of Factory Overhead/Estimated total amount of allocation base Estimated Total Amount of Factory Overehad=(A) Estimated Machine Hours=(B) Predetermined Overhead Rate(C)=(A)/(B) Actual Machine Hours=(D) Overhead Applied=(C)*(D) $ 4,50,000.00 75000 $ 6.00 80000 $ 4,80,000.00 65 T-Accounts Accounts Receivable Amount 66 Particular Amount Particular Sheet1 Sheet2 Sheet3 Ready Average: 376440.048 Count: 363 OU 100% + Sum: 47055006 A A 0 11:34 07-02-2020 ENG

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General LE Paste Format Painter Clipboard Calibri BI U - 11 - A A ->-A D Wrap Text Merge & Center ,, 18- 1 conditional terme . 3 insert Delete Format AutoSum" AT A 2 clear sort a Final de Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells - fx Hogle Corporation A1 A ETF G H I J Тк стр T-Accounts Accounts Receivable Amount Particular $ 15,00,000.00 By Balance C/d $ 15,00,000.00 Total Particular To Sales Total Amount $ 15,00,000.00 $ 15,00,000.00 Particular To Balance b/d To Accounts Payable Raw Material Amount Particular Amount $ 20,000.00 By Work in Process $ 3,60,000.00 $ 4,10,000.00 By Manufacturing Overhead $ 20,000.00 By Balance C/d $ 50,000.00 $ 4,30,000.00 Total $ 4,30,000.00 Total Amount $ 4,80,000.00 Particular To Raw Material To Salaries and Wages Payable To Accounts Payable To Accumulated Depreciation To Prepaid Insurance To Balance C/d Total Sheet1 Sheet2 Sheet30 Manufacturing Overhead Amount Particular $ 20,000.00 By Work in Process $ 1,10,000.00 $ 43,000.00 $ 2,80,000.00 $ 7,000.00 $ 20,000.00 $ 4,80,000.00 Total 84 85 86 Ke Ready $ 4,80,000.00 Average: 376440.048 Count: 363 Sum: 47055006 OU 100% + 0 11:34 07-02-2020 PAENG

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General - D LE Paste Format Painter Clipboard Calibri BI U - 11 - A A ->-A Wrap Text Merge & Center - E Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles E Autosum A7 Fill Z Et Sort & Find & 2 Clear Filter Select Editing Font Alignment Number Cells for Hogle Corporation A1 A C HT 2 88 Particular To Balance C/d E Prepaid Insurance Amount Particular Amount $ 10,000.00 By Manufacturing Overhead $ 7,000.00 By Insurance Expense $ 3,000.00 $ 10,000.00 $ 10,000.00 Total Particular To Balance B/d To Raw Material To Salaries and Wages To Manufacturing Overhead Work In Process Amount Particular $ 15,000.00 By Finished Goods $ 3,60,000.00 By Balance C/d $ 75,000.00 $ 4,80,000.00 $ 9,30,000.00 Total Amount $ 9,00,000.00 $ 30,000.00 Total $ 9,30,000.00 Particular To Balance B/d To Work in Process Finished Goods Amount Particular $ 30,000.00 By Cost of goods sold $ 9,00,000.00 By Balance C/d Amount $ 8,70,000.00 $ 60,000.00 Total $ 9,30,000.00 Total $ 9,30,000.00 107 108 109 110 Accumulated Depreciation Amount Particular Amount Particular S heet1 Sheet2 Sheet3 HI Ready Average: 376440.048 Count: 363 Sum: 47055006 OU 100% + 0 11:34 07-02-2020 PAENG W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 D . 3 AutoSum" AT Wrap Text Merge & Center A LE Paste Format Painter Clipboard 11 - A A ->-A Calibri BI U - Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells - fx Hogle Corporation A1 ГДА 108 109 стор TE F G H I тук 110 111 Particular To Balance C/d Accumulated Depreciation Amount Particular Amount $ 3,50,000.00 By Manufacturing Overhead $ 2,80,000.00 By Depreciation Expense $ 70,000.00 $ 3,50,000.00 $ 3,50,000.00 Total 113 114 Particular To Balance C/d Salaries and Wages Payable Amount Particular Amount $ 4,75,000.00 By Work in Process $ 75,000.00 By Manufacturing Overhead $ 1,10,000.00 By Sales Commission $ 90,000.00 By Administrative Salaries $ 2,00,000.00 $ 4,75,000.00 $ 4,75,000.00 Total Particular To Balance C/d 125 Accounts Payable Amount Particular Amount $ 6,50,000.00 By Raw Material $ 4,10,000.00 By Sales Travel Expense $ 17,000.00 By Manufacturing Overhead $ 43,000.00 By Advertisement Expenses $ 1,80,000.00 $ 6,50,000.00 $ 6.50 000 $ 6,50,000.00 127 128 129 130 Total Sheet1 Sheet2 Sheet3 Ready Average: 376440.048 Count: 363 Sum: 47055006 OU 100% + 0 11:34 07-02-2020 PAENG

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 D . 3 AutoSum" AT Wrap Text Merge & Center A LE Paste Format Painter Clipboard 11 - A A ->-A Calibri BI U - Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells for Hogle Corporation A1 ДА | E F G H I J K 132 Particular To Balance C/d Total C D Sales Account Amount Particular $ 15,00,000.00 By Accounts Receivable $ 15,00,000.00 Total Amount $ 15,00,000.00 $ 15,00,000.00 Particular To Finished Goods Total Cost of goods sold Amount Particular $ 8,70,000.00 By Balance C/d $ 8,70,000.00 Total Amount $ 8,70,000.00 $ 8,70,000.00 139 140 Particular To Accounts Payable Total Sales Commisssion Amount Particular $ 90,000.00 By Balance C/d $ 90,000.00 Total Amount $ 90,000.00 $ 90,000.00 145 146 147 Particular To Accounts Payable Total Administrative Salaries Amount Particular $ 2,00,000.00 By Balance C/d $ 2,00,000.00 Total Amount $ 2,00,000.00 $ 2,00,000.00 149 150 151 152 153 Particular To Accounts Payable Sheet1 Sheet2 Sheet3 Sales Travel Expense Amount Particular $ 17,000.00 By Balance C/d Amount | $ 17,000.00 K Ready Average: 376440.048 Count: 363 Sum: 47055006 OU 100% + 0 11:34 07-02-2020 ENG W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 1 Wrap Text Merge & Center - 3 Autosum * LE Paste Format Painter Clipboard Calibri BI U - 11 - A A ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells for Hogle Corporation HT A1 ГДА 147 148 Particular To Accounts Payable Total Amount Particular $ 2,00,000.00 By Balance c/d $ 2,00,000.00 Total Ε Ι Amount $ 2,00,000.00 $ 2,00,000.00 150 Particular To Accounts Payable Total Sales Travel Expense Amount Particular $ 17,000.00 By Balance C/d $ 17,000.00 Total Amount $ 17,000.00 $ 17,000.00 156 Particular To Accounts Payable Total Advertisement Expense Amount Particular $ 1,80,000.00 By Balance C/d $ 1,80,000.00 Total Amount $ 1,80,000.00 $ 1,80,000.00 159 160 162 162 163 Particular To Accumulated Depreciation Depreciation Expense Amount Particular $ 70,000.00 By Balance C/d $ 70,000.00 Total Amount | $ 70,000.00 $ 70,000.00 Total 164 165 166 167 Particular To Prepaid Insurance Total Sheet1 Sheet2 Sheet3 Insurance Expense Amount Particular $ 3,000.00 By Balance c/d $ 3,000.00 Total 168 Amount $ 3,000.00 $ 3,000.00 169 Ready Average: 376440.048 Count: 363 Sum: 47055006 O 100% + ENG 11:34 07-02-2020 W