Accounting

Able Corporation incurred the following costs. Beginning direct materials inventory $16,000 Beginning work-in-process inventory $7,000 Beginning finished goods inventory $19,000 Ending direct materials inventory $16,000 Ending work in process $14,000 Ending finished goods $ 26,000 Factory supervisor’s salary $28,000 Depreciation on plant $12,000 Sales $800,000 Selling and administrative expenses $125,000 Plant maintenance $6,000 Plant utilities $11,000 Direct material purchases $215,000 Direct labor $240,000 Calculate the following. Direct materials used Cost of goods manufactured Cost of goods sold Operating income Below is information from Job Card 506 for the Bearing Manufacturing Company. Date started: June 15, 2015 Date Completed: July 24, 2015 Date Direct Materials Direct Labor Applied Factory Overhead Job Total 6/15/2015 $ 5,000 6/25/2015 $1,200 $600 6/27/2015 $2,300 7/6/2015 $ 1,540 $770 7/15/2015 $2,600 7/24/2015 $760 $380 Job 506 was sold on credit on July 24, 2015, for 180% of its cost. Factory OH was applied on the basis of DL. Required: Prepare the journal entries to record the costs incurred for Job 506 in 2015 for direct materials, direct labor, and factory overhead. Prepare the journal entry to record the completion of Job 506. What is the predetermined factory overhead rate for Bearing Manufacturing? Prepare the journal entries to record the sale of Job 506.

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