April 1, Stelter Corporation had $34,000 of raw materials on hand. During the month, the company purchased an additional $60,000 of raw materials. During April, $70,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $7,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Work in Process account as a consequence of the raw materials transactions in April total: April 1, Stelter Corporation had $34,000 of raw materials on hand. During the month, the company purchased an additional $60,000 of raw materials. During April, $70,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $7,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The debits to the Manufacturing Overhead account as a consequence of the raw materials transactions in April total:
Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Topic: Underapplied and Overapplied Overhead 80. Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour. The predetermined overhead rate was based on how many estimated machine-hours? Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total machine-hours Estimated total machine-hours = Estimated total manufacturing overhead ÷ Predetermined overhead rate = $135,850 ÷ $24.70 per machine-hour = 5,500 machine-hours AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-01 Compute a predetermined overhead rate. Topic: Job-Order Costing
Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. Learning Objective: 02-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Topic: Job-Order Costing—The Flow of Costs Topic: Schedules of Cost of Goods Manufactured and Cost of Goods Sold 127. During June, Catlin Corporation purchased $76,000 of raw materials on credit to add to its raw materials inventory. A of $81,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials included $5,000 of indirect materials. Required: Prepare journal entries to record the purchase of materials and their use in production. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. Topic: Job-Order Costing—The Flow of Costs