The Cost Data for the Omega Manufacturing Company for the Month

question 2

Essay

The cost data for the Omega Manufacturing Company for the month of April 2016 is given below.
(a. )Raw materials and supplies costing $34,000 were purchased.
(b. )The summary of materials requisitions shows that materials and supplies costing $30,900 were issued for use in jobs.Direct materials accounted for $28,000,and the balance consisted of indirect materials and supplies.
(c. )The payroll summary shows that direct labor costs were $15,000 and indirect labor costs were $3,000.Social security tax withheld was $1,116,Medicare tax withheld was $261,and income tax deductions were $1,550.
(d. )Manufacturing overhead of $6,200 was incurred in addition to indirect materials and indirect labor (credit Accounts Payable).
(e. )The predetermined overhead application rate is 75 percent of direct labor costs.
(f. )The summary of completed jobs shows that the cost of these jobs amounted to $39,600.
(g. )The summary of sales invoices shows that goods costing $32,000 were sold on credit for $51,000.
Record the necessary entries on page 8 of a general journal.Omit descriptions.

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Definitions:

Tax-Transfer Program

Government initiatives designed to redistribute income through the tax system, often aiming to reduce poverty.

Economic Equality

A state in which individuals or groups within a society have similar economic conditions, including access to resources, opportunities, and outcomes.

Income Inequality

The unequal distribution of income and wealth across individuals or groups within a society, often measured using tools like the Gini coefficient.

Monopoly Power

The ability of a monopoly (a single seller in the market) to control market prices for its product or service, often resulting in higher prices and lower output than in competitive markets.