Question: 1 avaya uses a job costing system the march cost...
1. Avaya uses a job costing system. The March cost data were as follows:
Raw materials purchased on credit $ 400,800
Direct labour costs 417,250
Raw materials issued to production 368,030
Actual manufacturing overhead costs 319,680
Cost of goods manufactured 1,185,700
Sales (all on credit) 1,351,200
Machine hours for March were 65,000 hours, and the business applies overhead to production at a rate of $6.00 per machine hour. The beginning raw materials inventory was $46,080. The beginning work in process inventory was $75,870. The beginning and ending finished goods inventories were $121,300 and $100,560 respectively.
a) Prepare general journal entries to record the March transactions.
b) Was overhead overapplied or underapplied for the month of March?
c) Calculate the ending balances of raw materials and work in process. (Hint: Prepare T accounts for inventories.)