Reference no: EM132460962

ACCT 2270 - Managerial Accounting Assignment - Macomb Community College, USA

Question - The following data (in thousands) summarize the factory operations of the Benson Manufacturing Company for the year 20X1, its first year in business:

Data Table

a. Direct materials purchased for cash $450

b. Direct materials issued and used 400

c. Labor used directly on production 120

d1. Indirect labor 40

d2. Depreciation of plant and equipment 60

d3. Miscellaneous factory overhead (ordinarily would be detailed) 20

e. Overhead applied: 190% of direct labor ?

f. Cost of production completed 628

g. Cost of goods sold 408

Requirements -

1. Prepare summary journal entries. Omit explanations. For purposes of this problem, combine the items in part d as "overhead incurred".

2. Show the T-accounts for all inventories, Cost of Goods Sold, and Factory Department Overhead Control. Compute the ending balances of the inventories. Do not adjust for underapplied or overapplied factory overhead.