assist Transcribed Image Text: (d) is the balance in the Cost of Goods Sold account after the adjustment? (e) Compute KRAFT ‘R’ US’gross profit earned on the jobs completed. (f)

assist Transcribed Image Text: (d) is the balance in the Cost of Goods Sold account after the adjustment?
(e) Compute KRAFT ‘R’ US’gross profit earned on the jobs completed.
(f) Open T-accounts for Materials Inventory, Work in Process Inventory and Finished Goods Inventory. Post
the appropriate entries to these accounts & determine the ending account balances. Transcribed Image Text: KRAFT ‘R’ US does customized, hand-crafted memorabilia, in which each batch of items is a job. The
company has a highly labour intensive production process, so it allocates manufacturing overhead based on
direct labour hours.
Starz pre-determined overhead application rate for 20X8 was computed from the following data:
Total estimated factory overheads $2,400,000
Total estimated direct labour hours
40,000
At the end of May 20X8, KRAFT ‘R’ US reported the following inventories:
Materials Inventory
WIP Inventory
Finished Goods Inventory
Bal. $208,000
Bal. $176,000
Bal.
$95,000
During June 20X8, KRAFT ‘R’ US actually used 3,000 direct labour hours and recorded the following
transactions.
(1)
$310,000
Purchased materials on account
(ii)
Manufacturing wages incurred
$400,000
(iii)
Materials requisitioned (includes $30,000 of indirect materials)
$420,000
(iv)
Assigned manufacturing wages, 85% direct labour, 15% indirect labour
(v)
Depreciation expense on factory equipment used on the different jobs
$95,000
(v)
Other manufacturing overhead incurred
$35,000
(vi)
Allocated manufacturing overhead for June 20X8
(vii)
Cost of jobs completed
$995,000
(viii) Cost of jobs sold (on account) at a margin of 33%% on sales
$960,000
Required:

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer