At Multitask, Inc

question 219

Essay

At Multitask, Inc., the beginning balance of the work in process inventory account in June of the most recent year was $20,400. Direct materials used during June totaled $168,000. Total manufacturing labour incurred in June was $196,200, 80% of this amount represented direct labour. The predetermined manufacturing overhead rate is 120% of direct labour cost. Actual manufacturing overhead costs for June amounted to $148,800.

In June, two jobs were completed with total costs of $122,400 and $98,400, respectively. In June, the two jobs were sold on account for $210,000 and $152,400, respectively.

a) Compute the balance in work in process inventory on June 30.
b) Record the journal entry for direct materials used in June.
c) Record the journal entry to record labour costs for June.
d) Record the journal entry for allocated manufacturing overhead for June.
e) Record the entry to move the completed jobs into finished goods inventory in June.
f) Record the entry to sell the two completed jobs on account in June.

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Definitions:

Linear Function

A mathematical function that produces a graph of a straight line and is defined by an equation of the first degree.

Polynomial Function

A mathematical expression consisting of variables, coefficients, and non-negative integer exponents, summed together.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Revenue Models

Financial frameworks that outline how a business or project generates earnings through its operations and sales.