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XYZ Company recorded the following information related to their inventory accounts for 2009: January 1 December 31 Direct materials 36,000 30,000 Work in process ? ? Finished goods ? ?
XYZ Company's accounting records indicated the following costs had been incurred during 2009: Advertising ............................................. $37,000 Depreciation, factory building .......................... 60,000 Rent (70% for factory; 30% for office building) ......... ? Direct labor ............................................ ? Direct materials purchased .............................. 54,000 Indirect materials ...................................... 21,000 Sales commissions ....................................... ? Production supervisor's salary .......................... 80,000 Selling & administrative salaries ....................... 95,000 Utilities, factory building ............................. 64,000
Additional information: 1. XYZ Company applies overhead to products using a pre-determined rate of 125% of direct labor cost. 2. Conversion costs for 2009 were equal to 180% of prime costs for 2009. 3. Overhead was $19,000 over-applied for 2009. Calculate the total cost of rent incurred by XYZ Company in 2009.
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Prepare the journal entries to record these transactions on Jerel Company's books using a periodic inventory system.
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