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:

Motor Output

The response action of the nervous system activating muscles or glands after processing information.

Sensory Input

Refers to the stimuli or data received by the senses, which is then interpreted by the brain.

Physiological Responses

Refers to the automatic reactions or processes that occur within an organism in response to external or internal stimuli, including physical and biochemical changes.

Emotions

Complex psychological states that involve physiological expressions, psychological responses, and cognitive appraisals, influencing behavior and perception.