Shellenback Inc

question 91

Essay

Shellenback Inc.has provided the following information for the year ended 20x8:
a.Purchased raw materials on account for $200,000.
b.Issued $185,000 in raw materials to production ($12,000 were not traceable to specific jobs).
c.Incurred $155,000 in direct labor costs (14,750 hours),$52,500 in supervision costs (paid in cash).
d.Incurred the following additional manufacturing overhead costs: factory lease $22,000 (paid in cash);depreciation on equipment $26,000;factory utilities $13,500 (paid in cash).
e.Incurred the following nonmanufacturing costs,both paid in cash: advertising $55,000;sales commissions $58,000.
f.Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour.
g.Completed jobs costing a total of $457,000.
h.Sold jobs for $735,000 on account.The cost of the jobs was $441,000.
i.Closed the manufacturing overhead account balance.
Prepare the journal entries to record these transactions.

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