1. Creation Company produces gadgets for the coveted small appliance market. The

Question

1. Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014: Costs incurred: Purchases of direct materials (net) on credit $122,000 Direct manufacturing labor cost 83,000 Indirect labor 54,000 Depreciation, factory equipment 32,000 Depreciation, office equipment 7,900 Maintenance, factory equipment 29,000 Miscellaneous, factory overhead 9,900 Rent, factory building 78,000 Advertising expense 94,000 Sales commissions 33,000 Inventories: January 1, 2014 December 31, 2014 Direct materials $9,800 $13,000 Work in process 6,300 23,000 Finished goods 68,000 27,000 Creation Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.60 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials.
A. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control A 1. Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014: Costs incurred: Purchases of direct materials (net) on credit $122,000 Direct manufacturing labor cost 83,000 Indirect labor 54,000 Depreciation, factory equipment 32,000 Depreciation, office equipment 7,900 Maintenance, factory equipment 29,000 Miscellaneous, factory overhead 9,900 Rent, factory building 78,000 Advertising expense 94,000 Sales commissions 33,000 Inventories: January 1, 2014 December 31, 2014 Direct materials $9,800 $13,000 Work in process 6,300 23,000 Finished goods 68,000 27,000 Creation Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.60 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials.
A. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control A 1. Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014: Costs incurred: Purchases of direct materials (net) on credit $122,000 Direct manufacturing labor cost 83,000 Indirect labor 54,000 Depreciation, factory equipment 32,000 Depreciation, office equipment 7,900 Maintenance, factory equipment 29,000 Miscellaneous, factory overhead 9,900 Rent, factory building 78,000 Advertising expense 94,000 Sales commissions 33,000 Inventories: January 1, 2014 December 31, 2014 Direct materials $9,800 $13,000 Work in process 6,300 23,000 Finished goods 68,000 27,000 Creation Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.60 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials.
A. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control A

Explanation / Answer

RAW MATERIAL INVENTORY Balance 9,800 Work in Process 118,800 Accounts payable 122,000 march31, Balance 13,000 MANUFACTURING OVERHEADS Factory wages 54,000 Work In process 215,800 Cash (Rent& maintenance) 116,900 Acc. Depreciation 32,000 Balance 12,900 WORK IN PROCESS INVENTORY Balance 6,300 Finished Goods 282,100 Factory wages 83,000 Manufacturing OH 215,800 Balance 23,000 FINISHED GOODS INVENTORY Balance 68,000 Cost of Goods sold 323,100 work in Process 282,100 Balance 27,000 COST OF GOODS SOLD Finished Goods Inv 323,100 Balance 323,100

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