City University Of New York Operations And Supply Chain Management Assignment Help - Alake Company

Question - Raw materials $ 19,000

Work in process $82,000

Finished goods $ 32,000

The company applies overhead to jobs using a predetermined overhead rate based on machine-
hours. At the beginning of the year, the company estimated that it would work 36,000 machine-hours
and incur $216,000 in manufacturing overhead cost. The following transactions were recorded for the
year:

i. Raw materials were purchased, $443,000.
ii. Raw materials were requisitioned for use in production, $450,000 ($435,000 direct and $15,000
indirect).
iii. The following employee costs were incurred: direct labor, $229,000; indirect labor, $54,000; and
administrative salaries, $117,000.
iv. Selling costs, $119,000.
v. Factory utility costs, $21,000.
vi. Depre ...Read More ciation for the year was $121,000 of which $114,000 is related to factory operations and
$7,000 is related to selling, general, and administrative activities.
vii. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 38,000
machine-hours.
viii. The cost of goods manufactured for the year was $910,000.
xiv. Sales for the year totaled $1,173,000 and the costs on the job cost sheets of the goods that were
sold totaled $895,000.
xv. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.

Required: Prepare the appropriate journal entry for each of the items above (a. through j.). You can
assume that all transactions with employees, customers, and suppliers were conducted in cash. ...Read Less

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