Dobbs Transport assembles prestige manufactured homes. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $26 per machine-hour in 2020). The
following data (in millions) show operation costs for 2020.
(Click the icon to view the operations data (in millions)
Read the requirements.
Requirements
1. Identify the components of the overview diagram of Dobbs Transport's job-costing system.
2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted.
Post to T-accounts. What is the ending balance of Work-in-Process Control?
3. Show the journal entry for adjusting for under- or overallocated manufacturing overhead
directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts.
4. How did Dobbs Transport perform in 2020?
Operations data (in millions)
Materials Control, beginning balance, January 1, 2020
$\qquad 19
Work-in-Process Control, beginning balance, January 1, 2020
$\qquad 6
Finished Goods Control, beginning balance, January 1, 2020
$\qquad 11
Materials and supplies purchased on credit
$\qquad 151
Direct materials used
$\qquad 152
Indirect materials (supplies) issued to various production departments
$\qquad 16
Direct manufacturing labor
$\qquad 92
Indirect manufacturing labor incurred by various production departments
$\qquad 34
Depreciation on plant and manufacturing equipment
$\qquad 22
Miscellaneous manufacturing overhead incurred (ordinarily would be detailed
as repairs, utilities, etc., with a corresponding credit to various liability
accounts)
$\qquad 13
Manufacturing overhead allocated, 2,500,000 actual machine-hours
$\qquad ?
Cost of goods manufactured
$\qquad 297
Revenues
$\qquad 405
Cost of goods sold
$\qquad 300
