Question.185 - CHAPTER 20ASSIGNMENT Instructions: Complete the problems below. This assignment can be completed in either: Microsoft Excel, Word, or hand-written and scanned in PDF format. I prefer Microsoft Excel or Word but will not dock points for PDF format. PART A. For 1-8, identify if the following, when manufactured, would best be accounted for by a job costing system, or process costing system. Apartment Building Construction Post-it Notes Custom wedding invitations Pepsi Light Switch Covers Bic pens CPA firm audit arrangement Universal Studios movie production PART B: For 9-20, complete the following for the manufacturing process based on the following information:Manufacturing OverheadA predetermined overhead rate is used with direct labor costs as the activity base. The company expects annual overhead costs to be $450,000 and direct labor costs for the year to be $800,000.Manufacturing Costs Incurred for the PeriodThe company purchased $40,000 of raw materials on account. Factory labor for the month was $68,000 with $3,500 employer payroll taxes. Manufacturing overhead for the month included the following: Utilities Payable $8,500; Prepaid Insurance $6,000; Accounts Payable for maintenance $7,000; Accumulated Depreciation-Equipment $8,500; Property Taxes Payable $2,400.Assignment of CostsRaw materials used during the month were $34,000 and indirect materials used were $4,000. Direct labor for the month on the time sheets was $62,000 and indirect labor was $2,500. Completed goods for the month cost $98,000 and were all sold on account for $152,000. There was no work in process or finished goods inventory for January 1. Compute the predetermined overhead rate. Prepare the journal entry to record the purchase of raw materials. Prepare the journal entry to record the factory labor for the month. Prepare the journal entry to record the manufacturing overhead for the month. Prepare the journal entry to apply the raw material requisitions to work in process for the month. Prepare the journal entry to apply the time sheets to work in process for the month. Prepare the journal entry to apply the manufacturing overhead to work in process for the month. Prepare the journal entry to transfer work in process to finished goods for the month. Prepare the journal entry to record the sales for the month. Prepare the journal entry to record the amount of under- or over-applied manufacturing overhead? Prepare a Cost of Goods Manufactured Schedule for the period. Prepare a partial income statement for the period showing sales, cost of goods sold, and gross profit.
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