Alam company is a manufacturing firm that uses job-order

Reference no: EM13588671

Alam Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows:


Raw materials	$	25,400
Work in process	$	74,400
Finished goods	$	28,400

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 46,400 machine-hours and incur $185,600 in manufacturing overhead cost. The following transactions were recorded for the year:

a.	Raw materials were purchased, $417,400.
b.	Raw materials were requisitioned for use in production, $434,000 ($381,400 direct and $52,600 indirect).
c.	The following employee costs were incurred: direct labor, $415,400; indirect labor, $61,400; and administrative salaries, $213,400.
d.	Selling costs, $142,400.
e.	Factory utility costs, $21,400.
f.	Depreciation for the year was $83,800 of which $74,400 is related to factory operations and $9,400 is related to selling, general, and administrative activities.
g.	Manufacturing overhead was applied to jobs. The actual level of activity for the year was 49,400 machine-hours.
h.	The cost of goods manufactured for the year was $1,005,400.
i.	Sales for the year totaled $1,417,400 and the costs on the job cost sheets of the goods that were sold totaled $990,400.
j.	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. You can assume that all transactions with employees, customers, and suppliers were conducted in cash.

Reference no: EM13588671

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