Reference no: EM13331182

QUESTION #1

Listed below are selected items for Klugman Company at December 31, 2008.

Finished goods inventory $35,000 Short-term investments $28,000

Cash 20,000 Raw materials inventory 12,000

Prepaid expenses 2,000 Work in process inventory 18,000

Accounts receivable 4,000 Supplies 500

Instructions

Prepare the current assets section of the balance sheet. (Include a complete heading.)

QUESTION #2

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.

June 1 Purchased raw materials for $20,000 on account.

8 Raw materials requisitioned by production:

Direct materials $8,000

Indirect materials 1,000

15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.

25 Incurred $84,000 of factory labor.

25 Time tickets indicated the following:

Direct Labor (5,000 hrs $12 per hr) = $60,000

Indirect Labor (3,000 hrs $8 per hr) = 24,000

$84,000

QUESTION #3

Martin Co. applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year are as follows:

Actual manufacturing overhead $118,000

Estimated manufacturing overhead $110,000

Direct labor hours incurred 4,800

Direct labor hours estimated 5,000

Compute the predetermined overhead rate AND the amount of applied manufacturing overhead.