Question

I really, really need help with my Accounting II class! I need 1-4 answered along with the bullet points at the bottom. Thank you in advance if anyone can help, this determines if I graduate!
Your manufacturing company incurs several costs to make the finished product, which are cans of eco-friendly paint. You purchase 100 empty cans at $2.00 each and 200 labels for the cans of paint at $1.00 each. You have two employees who bottle the paint into the cans and one additional employee who places a label on each can. You take a printout from your clock where the employees have entered their time and find that the wages due to these three employees is $2,000.00. You must also pay payroll taxes in the amount of $140.00 total for these three employees. A number of other costs incurred must be taken into consideration as well: depreciation on the factory machine of $150.00, utilities of $200.00, prepaid insurance of $600.00, and property taxes on your building of $2,000.00.

1) Prepare the journal entries to record the purchase of the raw materials, the labor incurred, and the overhead incurred.
2) Assume that $100.00 of the raw materials and $1,000.00 of the indirect materials were used. Prepare the journal entries to assign these materials to the jobs and overhead.
3) Of the $2,140.00 in factory labor, $500.00 was attributed to indirect labor costs. Prepare the journal entry to assign the labor to jobs and overhead.
4) You determine that direct labor cost is the activity base for determining the predetermined overhead rate. The following information is known about the estimated annual costs:
overhead costs: $18,000.00
direct labor costs: $25,000.00
-What is the predetermined overhead rate?
-What is the journal entry to assign overhead to jobs?
-Prepare the journal entry to transfer costs to Finished Goods.
-A sale of the goods takes place. The goods are sold for $5,000.00. Prepare the journal entry to record this sale.

Answer 1

Hi there
See the attachments
Hope it helps