Manufactures variety of gasoline-powered

Assignment Help Financial Accounting

Reference no: EM13862496

TruCut Mower Company manufactures a variety of gasoline-powered

TruCut Mower Company manufactures a variety of gasoline-powered mowers for discount hardware and department stores. TruCut uses a job cost system and treats each customer's order as a separate job. The primary mower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis; the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July 2009, TruCut had the following work-in-process inventories:

Job 365 ………………………… $20,000

Job 366 ………………………… 16,500

Job 367 ………………………… 15,000

Job 368 ………………………… 9,000

Total …………………………… $60,500

During July, the following activities took place:

Started Jobs 369, 370, and 371.

Ordered and received the following raw materials for specified jobs:

Incurred July manufacturing payroll:

Direct labor Job 365 ………………………… $ 500

Job 366 ……………………………………… 3,200

Job 367 ……………………………………… 3,400

Job 368 ……………………………………… 4,160

Job 369 ……………………………………… 1,300

Job 370 ……………………………………… 2,620

Job 371 ……………………………………… 2,000

Total ………………………………………… 17,180

Indirect labor ……………………………….. 3,436

Total ………………………………………… $20,616

Incurred additional manufacturing overhead costs for July:

Manufacturing supplies purchased on account and used ……………….. $ 2,800

Depreciation on factory fixed assets ………………..…………………… 6,000

Miscellaneous payables ………………..………………..……………….. 5,100

Total ………………..………………..………………..………………….. $13,900

Applied manufacturing overhead using a predetermined rate based on predicted annual overhead of $190,000 and predicted annual direct labor of $200,000.

Completed and shipped Jobs 365 through 370.

Required

Prepare a complete analysis of all activity in Work-in-Process. Be sure to show the beginning and ending balances, all increases and decreases, and label each item. Provide support information on decreases with job cost sheets.

Reference no: EM13862496

Questions Cloud

Prepare journal entries for the issuance of the notes : Respond to the following. Submit journal entries in a table in MS Word and written segments in the same Word document. Do not submit two separate documents, as only one document can be accepted. Prepare journal entries for the issuance of the notes a..

Cash flow method from the examples in the content : You must show your work when solving these problems. Please use the cash flow method from the examples in the content, unless you are already familiar with another method and can show your work using the steps of that method.

Analyze the legal issues of e-business : Write a 350- to 700-word review of the article. Your review should assess the different types of and legal protections for intellectual property. Analyze the legal issues of e-business to include intellectual property, privacy, ethics, and securit..

What extent is your organization''s financial health affected : what extent is your organization's financial health affected by fiscal and monetary policy?

Manufactures variety of gasoline-powered : TruCut Mower Company manufactures a variety of gasoline-powered mowers for discount hardware and department stores. TruCut uses a job cost system and treats each customer's order as a separate job. Prepare a complete analysis of all activity in Work-..

What is your evaluation of the concept of the a and f look : What are the legal and ethical issues in this case? What is your evaluation of the concept of the "A&F look?" Have you personally observed this concept in practice?

Create a security plan for medium sized health care facility : Using what you learned from Part I, create a security plan for a medium sized health care facility. In your security plan, evaluate how you would approach security threats from both inside and outside the organization

Dollar markup and markup percent based on selling price : Oceanside Biking is a retail bicycle store. For last year's summer racing season, Oceanside purchased one new model of racing bike to use in a special promotion. To sell the chairs and pads quickly, the store priced the chairs at $135 each. Compute t..

How can socialization and mentoring be used to advance : How can socialization and mentoring be used to advance a career?

User Account

All Pages