Use T-accounts to compute the following:
a.
The total amount of materials requisitioned into work-in-process during December
b.
The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously)
c.
The total amount of manufacturing overhead recorded in work-in-process during December
d.
Ending balance in work-in-process, December 31
e.
Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead
3.
Prepare closing journal entries related to manufacturing overhead. Assume that all under- or overallocated manufacturing overhead is closed directly to Cost of Goods Sold.
Bronco Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending balances (as of December 31) in their inventory accounts are as follows: Click the icon to view the data Click the icon to view the additional information Read the requirements X More info
Accounts
Debit 4,350 1,450
Data table
X
(1a)
Work-in-Process Control Manufacturing Overhead Control Wages Payable Control
Additional information follows: a Direct materials purchased during December were $66,400. b. Cost of goods manufactured for December was $235,000. No direct materials were returned to suppliers. No units were started or completed on December 31 and no direct materials were purchased.
Beginning Balance 12/1 2,200 6,800
Ending Balance 12/31 8,600 9,100
5,800
Materials Control Work-in-Process Control Manufacturing Department Overhead Control Finished Goods Control
Now prepare the journal entry to allocate manufacturing overhead.
0 4,500
94,500 19,500
Accounts
Debit 6,090
Credit
Manufacturing overhead has been allocated at 140% of direct manufacturing labor costs through December 31
(1b)
Work-in-Process Control Manufacturing Overhead Allocated
6,090
Print
Print
Requirement 2. Use T-accounts to compute the following transactions. (Click the icon to view the transactions.) For direct labor and manufacturing overhead in the Work-in-Process account, enter the amounts for 12/30 and 12/31 separately to get the correct ending balance for each date. (Abbreviation used: MOH = Manufacturing overhead; Materials req. = Materials requisitioned; COGM = Cost of goods manufactured; COGS = Cost of goods sold.)
Materials Control 2,200
Work-in-Process Control
12/1 Bal.
12/1 Bal. 60,000 Direct labor Materials req. MOH allocated 12/30 Bal. Direct labor MOH allocated 12/31 Bal.
6,800
Requirements
X
[Purchases 12/31 Bal.
66,400] 86,0012/31Bal.
[COGM 12/30 Bal.
Prepare journal entries for the December 31 payroll. Use T-accounts to compute the following: The total amount of materials requisitioned into work-in-process during December The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) The total amount of manufacturing overhead recorded in work-in-process during December
Finished Goods Control 4,500 COGS
12/1 Bal. [COGM
12/31 Bal.
Cost of goods sold for December before adjustments for under- or overallocated manufacturing
Prepare closing journal entries related to manufacturing overhead. Assume that all under- or
12/31 Bal.
12/31 Bal.
