almeda products inc uses a job order costing system during the year the follow 403806 | Homework Solutions
Almeda Products, Inc., uses a job order costing system. During the year, the following transactions were completed: a. Raw materials were issued from the storeroom for use in production, $181,900 (80% direct and 20% indirect). b. Employee salaries and wages were accrued as follows: direct labor, $198,800; indirect labor, $82,300; and selling and administrative salaries, $89,400. c. Utility costs were incurred in the factory, $66,200. d. Advertising costs were incurred, $98,400. e. Insurance costs, $21,300 (90% related to factory operations, and 10% related to selling and administrative activities). f. Depreciation was recorded, $180,100 (85% related to factory assets, and 15% related to selling and administrative assets). g. Manufacturing overhead was applied to jobs at the rate of 170% of direct labor cost. h. Goods that cost $701,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i. Sales for the year totaled $1,390,000. The total cost to manufacture these goods according to their job cost sheets was $718,500 1Determine the underapplied or overapplied overhead for the year. (Omit the “$” sign in your response.) 2Prepare an income statement for the year. (Hint: No calculations are required to determine the cost ofgoods sold before any adjustment for underapplied or overapplied overhead.) (Input all amounts as positive values. Omit the “$” sign in your response.)
