Bartlett Corporation, Which Began Operations on January 1 of the Current

question 26

Essay

Bartlett Corporation, which began operations on January 1 of the current year, reported the following information:

Bartlett uses a normal cost system and applies manufacturing overhead to jobs on the basis of direct labor cost. A 60% markup is added to the cost of completed production when finished goods are sold. On December 31, job no. 18 was the only job that remained in production. That job had direct-material and direct-labor charges of $16,500 and $36,000, respectively.
Required:
A. Determine the company's predetermined overhead rate.
B. Determine the amount of under- or overapplied overhead. Be sure to label your answer.
C. Compute the amount of direct materials used in production.
D. Calculate the balance the company would report as ending work-in-process inventory.
E. Prepare the journal entry (ies) needed to record Bartlett's sales, which are all made on account.

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Definitions:

Word-Of-Mouth

Informal communication among consumers about the characteristics and quality of a product, service, or brand.

Sexual Harassment Policy

A guideline within organizations aimed at preventing and addressing sexual harassment at the workplace.

Data Collection Phase

The stage in a research or study process where data is gathered from various sources to be used for analysis.

Employment Equity

The employment of individuals in a fair and nonbiased manner.