Reference no: EM133001337

RCT Ltd. Manufactures and installs kitchen cabinetry. It uses normal job costing with two direct cost categories (direct materials and direct manufacturing labour) and one indirect cost pool for MOH, applied on the basis of MH at the beginning of the year, the company estimated that it would work 1,000,000 MH and had budgeted $80,000,000 for MOH.

The following data in $ millions) pertain to operations for the year 2022:

Materials control (beginning balance), December 31, 2021 $5.0

Work-in process control (beginning balance), December 31, 2021 $1.8

Finished goods control (beginning balance), December 31, 2021 $7.4

Materials and Supplies purchased on account $240

Direct materials used $198

Indirect Materials (supplies) issued to various departments $24

Direct manufacturing labour $127

Indirect manufacturing labour incurred by various departments $21

Depreciation on plant and manufacturiong equipment $23

Miscellaneous manufacturing overhead incurred (credit Various

Liabilities; ordinarily would be detailed as repairs, utilities, etc.) $10

Manufacturing overhead allocated (937,500 actual MH) ?

Cost of good manufactured $374.6

Revenues $540

Cost of goods sold $369

Required:

Problem 1.) Prepare general journal entries. Post to T-accounts. What is the ending balance of Work-in Process Control?

Problem 2.) Show the journal entry for disposing of over-or underallocated manufacturing overhead directly as a year-end write-off to Cost of Goods Sold. Post the entry to T-accounts.