1. Journalize the transactions for the company, 2. T-accounts for the general le

Question

1. Journalize the transactions for the company, 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary Account Title Cash Accounts Receivable Inventories Debit Credit $14,000 ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger have been opened for you along with each account's balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference 160,000 3. Prepare a trial balance at June 30, 2018 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost Raw Materials 6,000 40,000 20,400 220,000 of goods manufactured for the month of June 5. Prepare an income statement for the month of June Work-in-Process Raw Materials Inventory subsidiary ledger: Paper, $4,000; indirect materials $2,000 Work-in-Process Inventory subsidiary ledger: Job 120, $40,000; Job 121, $O Finished Goods Inventory subsidiary ledger: Large Stars, $9,900: Small Stars $10,500o a. Collections on account, $145,000 b. Selling and administrative expenses incurred and paid, $32,000 c. Payments on account, $39,000 d. Materials purchased on account: Paper, $24,000; indirect materials, $4,200 e. Materials requisitioned and used in production: Finished Goods Property, Plant, and Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Overhead Selling and Administrative Expenses Total $ 75,000 134,000 2,600 139,000 109,800 Job 120: Paper, $950 Job 121: Paper7,900 Indirect materials, 1,200 0 f. Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect labor, $18,400 g. Wages paid in June include the balance in the Wages Payable at May 31 plus $36,100 of wages incurred $ 460,400 $ 460,400 h. i. during June. Depreciation on plant and equipment, $2,500 Manufacturing overhead allocated at the predetermined overhead allocation rate of 80% of direct labor costs. j Jobs completed during the month: Job 120 with 700,000 Large Stars at a total cost of $47,430 k. Sales on account: all of Job 120 for $104,000 I Adjusted for overallocated or underallocated manufacturing overhead.

Explanation / Answer

1 Event Account titles Debit Credit a. Cash 145000 Accounts receivable 145000 (Collections on account) b. Selling and administrative expense 32000 Cash 32000 (Selling expenses paid) c. Accounts payable 39000 Cash 39000 (Payments on account) d. Raw materials inventory 28200 Accounts payable 28200 (Materials purchased on account) e. Work-in-process inventory (950+7900) 8850 Manufacturing overhead 1200 Raw materials inventory 10050 (To record assignment of direct materials) f. Salaries and wages expense 39000 Wages payable 39000 (Salaries and Wages incurred) Work-in-process inventory (3600+17000) 20600 Manufacturing overhead 18400 Salaries and Wages expense 39000 (To record assignment of factory labor) g. Wages payable (36100+2600) 38700 Cash 38700 (Salaries and Wages paid) h. Manufacturing overhead 2500 Accumulated depreciation-Plant and equipment 2500 (Depreciation recorded) i. Work-in-process inventory (20600*0.80) 16480 Manufacturing overhead 16480 (To record assignment of manufacturing overhead) j. Finished goods inventory 47430 Work-in-process inventory 47430 (To record completion of jobs) k. Accounts receivable 104000 Sales revenue 104000 (To record sale of goods) Cost of goods sold 47430 Finished goods inventory 47430 (To record the cost of goods sold) l. Cost of goods sold 5620 Manufacturing overhead 5620 (Unerallocation adjusted) Note:1-Computation of overallocated or under allocated overhead Actual manufacturing overhead: $ Indirect materials 1200 Indirect labor 18400 Depreciation 2500 Total 22100 Allocated manufacturing overhead=$ 16480 Since actal manufacturing overhead is greater than applied overhead, overhead is said to be under applied Under-allocated overhead=22100-16480=$ 5620 2 Raw materials inventory Particulars Debit Particulars Credit Beg.Bal 6000 e. 10050 (d) 28200 34200 10050 End.Bal 24150 Work in process inventory Particulars Debit Particulars Credit Beg.Bal 40000 j. 47430 e. 8850 f. 20600 i. 16480 85930 47430 End.Bal 38500 Finished goods inventory Particulars Debit Particulars Credit Beg.Bal 20400 k. 47430 j. 47430 67830 47430 End.Bal 20400 3 Trial balance at June 30,2018 Debit Credit Cash (14000+145000-32000-39000-38700) 49300 Accounts receivable (160000-145000+104000) 119000 Inventories: Raw materials 24150 Work in process 38500 Finished goods 20400 Property,Plant and equipment 220000 Accumulated depreciation (75000+2500) 77500 Accounts payable (134000-39000+28200) 123200 Wages payable (2600+39000-38700) 2900 Common stock 139000 Retained earnings 109800 Sales revenue 104000 Cost of goods sold (47430+5620) 53050 Manufacturing overhead (1200+18400+2500-16480-5620) 0 Selling and administrative expenses 32000 Total 556400 556400 5 Income statement $ Sales revenue 104000 Less: Cost of goods sold 53050 Gross margin 50950 Less: Selling and administrative expenses 32000 Net income 18950 4 Schedule of cost of goods manufactured $ $ Direct materials used 8850 Direct labor 20600 Manufacturing overhead applied 16480 Total manufacturing costs 45930 Add: Beginning balance of work in process ( Note:2) 40000 85930 Less: Ending balance of work in process 38500 Cost of goods manufactured 47430

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