Problem 1 The Commonwealth Company uses a job-order cost system and applies fabricating overhead cost to occupations utilizing a predetermined operating expense rate basedon the cost of stuffs used in production. At the beginning of the twelvemonth. the undermentioned estimations were made as a footing for calculating the predetermined overhead rate: fabrication operating expense cost. $ 186. 000 ; direct stuffs cost. $ 155. 000.
The undermentioned minutess took topographic point during the twelvemonth ( all purchases and services were acquired on history ) : a. b. c. d. Raw stuffs purchased. $ 96. 000. Natural stuffs requisitioned for usage in production ( all direct stuffs ) . $ 88. 000. Utility measures incurred in the mill. $ 17. 000. Costss for wages and rewards incurred as follows: Direct labour. $ 174. 000 Indirect labour. $ 70. 000 Selling and administrative wages. $ 124. 000 Care costs incurred in the mill. $ 12. 000. Ad costs incurred. $ 98. 000. Depreciation recorded for the twelvemonth. $ 75. 000 ( 75 % relates to factory assets and the balance relates to selling and administrativeassets ) .
Rental cost incurred on edifices. $ 80. 000 ( 80 % of the infinite is occupied by the mill. and 20 % is occupied by gross revenues and disposal ) . Assorted merchandising and administrative costs incurred. $ 12. 000. Manufacturing overhead cost was applied to occupations. Cost of goods manufactured for theyear. $ 480. 000. Gross saless for the twelvemonth ( all on history ) totaled $ 900. 000. These goods cost $ 550. 000 to manufacturee. f. g. h. i. j. k. l. Requirements: Prepare journal entries on the undermentioned page to enter the information above.