The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
Crane Wings, Inc. manufactures airplanes for use in stunt shows. Crane’s factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Crane uses a job order costing system to accumulate product costs.
At the end of 2016, Crane’s accountants developed the following expectations for 2017 based on the marketing department’s sales forecast:
Budgeted overhead cost$1,121,000Estimated machine hours54,000Estimated direct labor hours11,000Estimated direct materials cost$1,510,000
Crane’s inventory count, completed on December 31, 2016, revealed the following ending inventory balances:
Raw Materials Inventory$251,000Work in Process Inventory$626,000Finished Goods Inventory$2,240,000
The company’s 2017 payroll data revealed the following actual payroll costs for the year:
Job TitleNumber
EmployedWage Rate
per HourAnnual
Salary per
EmployeeTotal Hours
Worked per
EmployeePresident and CEO1$223,000Vice president and CFO1$177,000Factory manager1$40,000Assistant factory manager1$33,500Machine operator5$14.52,250Security guard, factory
2$20,400Forklift operator2$7.52,000Corporate secretary1$35,200Janitor, factory2$62,150
The following information was taken from Crane’s Schedule of Plant Assets. All assets are depreciated using the straight-line method.
Plant AssetPurchase PriceSalvage ValueUseful LifeFactory building$4,000,000$150,00020 YearsAdministrative office$650,000$125,00030 YearsFactory equipment$2,000,000$20,00012 Years
Other miscellaneous costs for 2017 all paid in cash included:
CostAmountFactory insurance (fully expired)$13,800Administrative office utilities$5,000Factory utilities$30,800Office supplies (fully consumed)$4,600
Additional information about Crane’s operations in 2017 includes the following:
•Raw materials purchases for the year amounted to $1,945,000. All materials were purchased on account.
•The company used $1,870,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials.•Crane applied overhead to Work in Process Inventory based on direct materials cost.•Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory.•Crane uses a markup of 80% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account.
(Note: This transaction requires two journal entries.)
Prepare the journal entries to record Crane’s costs for 2017. (Use Salaries Payable and Wages Payable accounts for payroll costs.
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more