1. Use T-accounts to track product expense flows via Raw Materials, Work In Process, Finimelted Goods, Manufacturing Overhead, and COGS. Remember to usage the inventory accounts as control accounts only.

2. Set up a project expense sheet for Jobs 1010, 1011, 1012, and also 1013 and also record manufacturing expense. Attach a separate schedule mirroring how manufacturing overhead expense were calculated for each project.

3. Calculate any type of over or under-applied overhead

4. Determine the ending balances of the inventory accounts that would appear on the balance sheet at the finish of the accountancy duration assuming over or under-used overhead is closed to COGS.

5. Prepare an income statement for the present bookkeeping period assuming over or under-applied overhead is closed to COGS.




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Raw Material Cost Opening Raw Material Balance = 16,000 (+) Raw Material Purchased on Account = 160,200 Total Raw Material Cost = 176,200 Work In Progress Cost Opening Balance of Work In Progress = 50,650 (+) Raw Material Cost Incurred = 176,200 (+)…View the complete answer
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Transcribed image text: J & B started the current accountancy period through the following basic ledger ba he adhering to general ledger balances: $16.000 50,650 Raw products .... Work in process (Job 1010)......... Finiburned goods ......... The complying with transactions emerged during the month: -0- $250,000 1. Raw products purchased on account. ... 2. Raw products requisitioned for production. Job 1010......... Job 1011 ......... .. Job 1012................ Job 1013............ Instraight products ........ $31,500 52,500 34,500 15,000 26,700 $160,200 3. Labor prices incurred Job 1010............... Job 1011 ............... Job 1012............. Job 1013.................. Indirect labor weras ........... Sales and governmental wages and also salaries $21,000 35,500 22,500 10,500 UE 35,500 220,000 $345,000 Supervisors 4. Utility prices incurred Factory framework.... .. Sales and also administrative workplaces ........ $20,250 8.750 $29,000 5. Recorded depreciation Factory equipment. Sales and administrative workplaces. . . . . . . . $ 6,675 11.000 $17,675 $8,000 6. Incurred declaring expenses ...... 7. Applied production overhead expenses to tasks making use of activity-based costing. 8. Job 1010 and Job 1011 were completed and also moved to finished products. 9. Job 1010 was offered on account for $371,500. Bids for the following work were submitted by J&B Company type of and accepted by customers Job 1010-1,850 devices Job 1011-1.750 units Job 1012 - 2.000 units Job 1013-1.500 systems Manufacturing overhead J & B offers activity-based costing to apply production overhead to each task. J & B approximated the following overhead prices and also meant activity for each price pool: Estimated OH Activity expense pool Activity measure overhead expense Expected Activity Depreciation Number of systems 7,100 devices $ 10,650 Number of inspections Inspection 48 inspections $2,400 Machine setup Number of setups $28,400 142 setups Supervision Direct labor hours (DLH) 7.100 DLH $35,500 $26,700 Supplies Direct material prices $133,500 Utilities Machine hours (MH) $ 14,200 3.550 MH Beg up At the beginning of the month, Job 1010 had 800 completed systems at a price of $50,650, Jobs 1011, 1012, and also 1013 were started throughout the month. Jobs 1010 and 1011 were completed during the month, and also Job 1010 was sold throughout the month. Actual outcomes at the end of the month are as follows: Job 1010 1,050 Job 1011 1,750 Job 1012 1,150 Joh 1013 500 Number of systems produced Number of setups 35 40 Machine hrs 525 MH 900 MH 570 MH 14 265 MH 3 Number of inspections 12 Direct labor hours 1,050 DLH 1,775 DLH 1,125 DLH 525 DLH