Northwest Inc

question 96

Essay

Northwest Inc.has provided the following information for the year ended 20x8:
a.Purchased raw materials on account for $150,000.
b.Issued $130,000 in raw materials to production ($34,000 were not traceable to specific jobs).
c.Incurred $144,000 in direct labor costs (14,120 hours)and $62,500 in supervision costs (paid in cash).
d.Incurred the following additional manufacturing overhead costs: factory lease $36,000 (paid in cash);depreciation on equipment $30,000;indirect supplies $13,500 (paid in cash).
e.Incurred the following nonmanufacturing costs,both paid in cash: advertising $45,000;sales commissions $48,000.
f.Applied manufacturing overhead to jobs in process at a rate of $13 per direct labor hour.
g.Completed jobs costing a total of $415,000.
h.Sold jobs for $625,000 on account.The cost of the jobs was $412,000.
i.Closed the Manufacturing Overhead account balance.
Prepare the journal entries to record these transactions.

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Definitions:

Regulatory Forces

External rules and regulations imposed by governing bodies that affect how businesses operate and interact with customers.

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