Ravsten Company utilizes job-order pricing. Since January 1,
|Work in process||$||9,760|
Overhead costs are applied to job positions on the basis
|a.||The raw materials were purchased
|b.||Requisitions were made for raw materials
Production: $193,000 (80% Direct and 20% Indirect).
|c.||These were the costs
|d.||Costs of heat, water, and power
The factory incurred $43,350.
Prepaid insurance expires during the following year: $11,500 (85%).
|f.||Advertising expenses were incurred.
For the year, depreciation was $61,800 (90%)
The overhead manufacturing cost was used to produce. This was The
Production of goods costing $493,100 according to job
The year’s sales totalled $714,000, and all were on account.
Make journal entries for the above transactions.
For inventories and Manufacturing Overhead prepare T-accounts
|3-a.||Are you in manufacturing?
Are overheads underapplied/overapplied during the calendar year?
Make a journal note to dispose of the balance.
Prepare an income statement each year
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