Business
Kapoor Company uses job-order costing. During January, the following data were reported: a. Materials purchased on account: direct materials, $98, 500: indirect materials, $14, 800. b. Materials issued: direct materials, $82, 500: indirect materials, $8, 800. c. Labor cost incurred: direct labor, $67, 000: indirect labor, $18, 750. d. Other manufacturing costs incurred (all payables), $46, 200. e. Overhead is applied on the basis of 110 percent of direct labor cost. f. Work finished and transferred to Finished Goods Inventory cost $230, 000. g. Finished goods costing $215, 000 were sold on account for 140 percent of cost. h. Any over-or under applied overhead is closed to Cost of Goods Sold. 1. Prepare journal entries to record these transactions. 2. Prepare a T-account for Overhead Control. Post all relevant information to this account. What is the ending balance in this account? 3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10, 000, and post all relevant information to this account. Did you assign any actual overhead costs to Work-in-Process Inventory? Why or why not?
Megasoft Corporation develops, produces, and markets a wide range of computer software including the Windows operating system. Megasoft reported the following information about Net Sales Revenue and Accounts Receivable (all amounts in millions).June 30, 2016 June 30, 2015Accounts Receivable, Net of Allowance for Doubtful Accounts of $310 and $360 $ 16,950 $ 15,700Net Revenues 68,000 62,000According to its Form 10-K, Megasoft recorded Bad Debt Expense of $22 and did not recover any previously written-off accounts during the year ended June 30, 2016.Required:What amount of accounts receivable was written off during the year ended June 30, 2016? (Enter your answer in millions.)What was Megasofts receivables turnover ratio in 2016? (Round your answer to 1 decimal place.)