The Journal entries are complete and 100% correct, I just need the steps after (
ID: 2498148 • Letter: T
Question
The Journal entries are complete and 100% correct, I just need the steps after (starting with T accounts). The entries are:
b.) Debit Raw materials inventory 200,000
Credit Accounts payable 200,000
c.) Debit Work In Process 173,000
Debit Manufacturing Overheard 12,000
Credit Raw Materials Inventory 185,000
D.) Debit Work In Process Inventory 155,000
Debit Manufacturing Overhead 52,500
Credit Cash 207,500
E.) Debit Manufacturing Overhead 61,500
Credit Accumulated Depreciation 26,000
Credit Cash 35,500
F.) Debit Advertising Expense 55,000
Debit Sales Commissions Expense 58,000
Credit Cash 113,000
G.) Debit Work In Process Inventory 132,750
Credit Manufacturing Overhead 132,750
H.) Debit Finished Goods Inventory 457,000
Credit Work In Process Inventory 457,000
I.) Debit Accounts Receivables 735,000
Credit Sales Revenue 735,000
I.) Debit Cost of Goods Sold 441,000
Credit Finished Goods Inventory 441,000
J.) Debit Manufacturing Overhead 6,750
Credit Cost of Goods Sold 6,750
2. Shellenback Inc. has provided the following information for April 20x5: a. Beginning balances: raw material S20,000, in-process S30,000 and finished goods $15,000. b. Purchased raw materials on account for $200,000. c. Issued $185,000 in raw materials to production (S 12,000 were not traceable to specific jobs). d. Incurred $155,000 in direct labor costs (14,750 hours), $52,500 in supervision costs (paid in cash). e. Incurred the following additional manufacturing overhead costs: factory lease S22,000 (paid in cash); depreciation on equipment $26,000; factory utilities S13,500 (paid in cash). r. Incurred the following nonmanufacturing costs, both paid in cash: advertising S55,000; sales commissi S58,000. ons g. Applied manufacturing overhead to jobs in process at a rate of S9 per direct labor hour. h. Completed jobs costing a total of $457,000. i. Sold jobs for S735,000 on account. The cost of the jobs was $441,000. Closed the manufacturing overhead account balance. j. Required: (15 points) Record the transaction journal entries. Post the transactions to T accounts Compute over or underapplied manufacturing overhead. If the balance in the Manufacturing Overhead account is closed directly to Costof Goods Sold, will it increase or decrease? Prepare cost of goods manufactured report for April Prepare April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead.Explanation / Answer
Raw material inventory account Debit Credit 200,000 185,000 Accounts payable Debit Credit 200,000 Work in process account Debit Credit 173,000 457,000 155,000 132,750 Manufacturing overheads Debit Credit 12,000 132,750 52,500 61,500 6,750 132,750 132,750 Cash Debit Credit 207,500 35,500 113,000 Accumulated depreciation Debit Credit 26,000 Advertising expense Debit Credit 55,000 Sales commission expense Debit Credit 58,000 Finished good inventory Debit Credit 457,000 441,000 Accounts receivable Debit Credit 735,000 Sales revenue Debit Credit 735,000 Cost of goods sold Debit Credit 441,000 6,750 Manufacturing overheads 132,750 Direct labor hours 14,750 cost absorbed per hour 9.0 applied overhead rate 9 difference - Income statement Sales 735,000 Cost of goods sold 441,000 Gross profit 294,000 Advertising exp 55,000 Sales commission expense 58,000 Depreciation expense 26,000 Factory lease 22,000 Factory Utilities 13,500 Total operating expense 174,500 Net profit 119,500
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