Frontier Inc

question 106

Essay

Frontier Inc. has provided the following information for 20x5:
a. Purchased raw materials on account for $240,000.
b. Issued $230,000 in raw materials to production ($32,000 were not traceable to specific jobs).
c. Incurred $242,000 in direct labor costs (24,120 hours) and $92,500 in supervision costs (paid in cash).
d. Incurred the following additional manufacturing overhead costs: factory utilities $24,000 (paid in cash); depreciation on equipment $45,000; indirect supplies $17,500 (paid in cash).
e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $75,000; sales salaries $88,000.
f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour.
g. Completed jobs costing a total of $644,000.
h. Sold jobs for $856,000 on account. The cost of the jobs was $642,000.
i. Closed the manufacturing overhead account balance.
Prepare the journal entries to record these transactions.

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Definitions:

Taxes

Mandatory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.

Taxing Entities

Governments or jurisdictions with the authority to impose taxes on individuals, corporations, property, or transactions.

Merchandising Business

A business that buys goods in a ready-to-sell form and earns revenue by selling these goods to customers.

Products

Items or services that are created or provided by a business for sale to customers.