Frontier Inc

question 129

Essay

Frontier Inc.has provided the following information for the year ended 20x8:
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:

Commissioned Drug Salesman

A sales representative specifically authorized to sell pharmaceutical drugs, often working on a commission basis.

Car Allowance

is a financial stipend provided by an employer to its employees for the expenses associated with using one's personal car for work purposes.

Legal Action

The process of seeking or enforcing rights through the judicial system, often involving litigation or court proceedings.

Wrongfully Dismissed

Terminated from employment without just cause or in violation of the terms of the employment contract or labor laws.