I still need help with E, G , and H please! Job Cost Journal Entries Prior to th
ID: 2339528 • Letter: I
Question
I still need help with E, G , and H please!
Job Cost Journal Entries Prior to the beginning of 2016, Lowe Company estimated that it wouldl incur $176,000 of manufacturing overhead cost during 2016, using 16,000 direct labor hours to produce the desired volume of goods. On January 1, 2016, beginning balances of Materials Inventory, Work in Process Inventory and Finished Goods inventory were $28,000, 4, and $43,000, respectively. Required Prepare general journal entries to record the following for 2016: , purchased materials account, 39,000. Debit Credit Materials inventary 9,000 Accounts payabla 039,000 b. Of the total dollar value of materials used, $31,000 represented direct material and $11,000 indirect material. Debit Credit Work in process inventory 1,000 Manufacturing overhead 11,000 Materias inventory o42.000 c. Determined total factory labor, $135,000 (15,000 hrs.$9/hr.). d. Of the factory labor, 80% was direct and 20% indirect. Debit Work in process inventory 108.000 27,000 Wages payable e. Applied manufacturing overhead based on direct labor hours to woirk in process. Qehì Work in process inventory 358,000x 000 K f. Determined actual manufacturing overhead other than those items already recorded, $92,000. (Credit Accounts Payable.) Debit Credit Manufacturing overhead 92.000 Accounts payable 92.000 8. Ending inventories of work in process and finished goods were $32,(000 and $57,000, respectively. Determine the cost of finished goods (credit WIP) and the cost of goods sold (credit FG inventory). Make separate entries. Crelt Finished goods inventory 272.000x Work in process invertory Debit Credit Cost of goods sold 258,000Explanation / Answer
Solution E:
Predetermined overhead rate = Estimated overhead / Estimated direct labor hours
= $176,000 / 16000 = $11 per direct labor hour
Actual direct labor hours = 15000 * 80% = 12000 hours
Manufacturing overhead applied = 12000 * $11= $132,000
Solution G:
Cost of goods manufactured = Direct material + Direct labor + overhead applied - Ending WIP
= $31,000 + $108,000 + $132,000 - $32,000 = $239,000
Cost of goods sold = Beginning finished goods inventory + cost of goods manufactured - Ending finished goods inventory
= $43,000 + $239,000 - $57,000 = $225,000
Solution H:
Actual manufacturing overhead incurred = $11,000 + $27,000 + $92,000 = $130,000
Overhead applied = $132,000
Overapplied overhead = $132,000 - $130,000 = $2,000
Journal Entries - LoweCompany Event Particulars Debit Credit E Work in Process Inventory Dr $132,000.00 To Manufacturing overhead $132,000.00 (To record manufacturing overhead applied)