Solution-What is the ending balance of work-in-process

What is the ending balance of work-in-process control

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Reference no: EM131500281

Problem -

Donald 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 $31 per machine-hour in 2014). The following data (in millions) show operation costs for 2014:

Materials Control, beginning balance, January 1, 2014	$18
Work-in-Process Control, beginning balance, January 1, 2014	$9
Finished Goods Control, beginning balance, January 1, 2014	$10
Materials and supplies purchased on credit	$154
Direct materials used	$152
Indirect materials (supplies) issued to various production departments	$19
Direct manufacturing labor	$96
Indirect manufacturing labor incurred by various production departments	$34
Depreciation on plant and manufacturing equipment	$28
Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts)	$13
Manufacturing overhead allocated, 3,000,000 actual machine-hours	?
Cost of goods manufactured	$298
Revenues	$410
Cost of goods sold	$294

1. 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?

2. Show the journal entry for disposing of under- or over allocated manufacturing overhead directly as a year-end write off to Cost of Goods Sold. Post the entry to T-accounts.

3. How did Donald Transport perform in 2014?

Save your assignment as a Microsoft Excel document.

Accounts -

Materials Control
Work-in-Process Control
Finished Goods Control
Cost of Goods Sold
Manufacturing Department Overhead Control
Manufacturing Overhead Allocated
Accounts Payable Control
Wages Payable Control
Accumulated Depreciation
Various Liabilities
Accounts Receivable Control
Revenues

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The said paper is in relation to preparation of costing ledgers and journal on the basis of data provided.Here we have first of all prepare journal entries using appropriate costing ledgers and then prepared costing ledgers of each account to calculate the profit of the company. All the working is done in excel.

Reference no: EM131500281

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What is the ending balance of work-in-process control

Reference no: EM131500281

Reference no: EM131500281

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