Reference no: EM131789718
Question - Job costing, journal entries. Donnell 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 $ 30 per machine- hour in 2011). The following data (in millions) pertain to operations for 2011:
Materials Control, beginning balance, January 1, 2011 - $ 12
Work- in- Process Control, beginning balance, January 1, 2011 - 2
Finished Goods Control, beginning balance, January 1, 2011 - 6
Materials and supplies purchased on credit - 150
Direct materials used - 145
Indirect materials (supplies) issued to various production departments - 10
Direct manufacturing labor - 90
Indirect manufacturing labor incurred by various production departments - 30
Depreciation on plant and manufacturing equipment - 19
Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) - 9
Manufacturing overhead allocated, 2,100,000 actual machine- hours - ?
Cost of goods manufactured - 294
Revenues - 400
Cost of goods sold - 292
Required -
1. Prepare an overview diagram of Donnell Transport's job- costing system.
2. 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?
3. Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year- end write- off to Cost of Goods Sold. Post the entry to T- accounts.