Donald 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 $31 per machine-hour
|Materials Control, beginning balance, January 1, 2014||$18|
|Work-in-Process Control, beginning balance, January 1, 2014||$9|
|Finished Goods Control, beginning balance, January 1, 2014||$10|
|Materials and supplies purchased on credit||$154|
|Direct materials used||$152|
|Indirect materials (supplies) issued to various production departments||$19|
|Direct manufacturing labor||$96|
|Indirect manufacturing labor incurred by various production departments||$34|
|Depreciation on plant and manufacturing equipment||$28|
|Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts)||$13|
|Manufacturing overhead allocated, 3,000,000 actual machine-hours||?|
|Cost of goods manufactured||$298|
|Cost of goods sold||$294|
- 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?
- Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts.
- How did Donald Transport perform in 2014?