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NOTE: YO THERE ARE MANY POSSIBLE ANSWERS TO EACH PRUBL EXPECT 10 TO 1 5 DIFFER E

ID: 2545884 • Letter: N

Question

NOTE: YO THERE ARE MANY POSSIBLE ANSWERS TO EACH PRUBL EXPECT 10 TO 1 5 DIFFER ENT SOLUTIONS. Problem 1 (50 points) Using T accounts to represent various manufacturing accounts, reflect the flow of the costs for this calendar quarter as summarized below. (Show your work) 1. a. Account balances at the start of the quarter are: Materials, $218,000; Work in process, -0- Finished goods, $240,000; Factory labor, 0-; Manufacturing overhead, $26,800; Cost of goods sold, $324,000. Materials purchased during the quarter, $182,000; materials issued to maintenance crew cost, $12,400; materials put into production cost, $204,000. b. c. Labor cost incurred during the quarter, $386,000; $352,000 of this was direct labor for the production of goods and the balance was for the cost of maintenance and supervisory staffs. d. Various manufacturing overhead expenses were paid or accrued totaling $74,400. e. Overhead costs are allocated to production at 30% of direct labor costs. (see pages 894- f. The cost of manufactured goods completed during the quarter was $610,000. g. Ending inventories were: Materials, S??; Work in Process, $ ??; and Finished Goods, 897 of Chapter 19 of the textbook) $215,000 ($??-compute amount; show work). Page 1 of 3

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Accounts Payable        182,000.00 Raw Material        182,000.00 (record the purchase of raw material) b. Work in Process        204,000.00 Manufacturing Overhead          12,400.00 Raw Materials        216,400.00 (record the raw materials used in production) c. Work in Process        352,000.00 Manufacturing Overhead          34,000.00 Factory Labor        386,000.00 (record the salaries expense) d. Manufacturing Overhead          74,400.00 Various Accounts          74,400.00 (record the maint. Cost incurred ) e Work in Process        105,600.00 $352,000 X 30% Manufacturing Overhead        105,600.00 (record the manufacturing overhead applied) f. Finsihed Goods Inventory        610,000.00 Work In Process        610,000.00 (record the finished goods produced) Raw Materials Work in Process Manufacturing Overhead Beg. Bal.        218,000.00    216,400.00 b. Beg. Bal.                       -          610,000.00 f. Beg. Bal.      26,800.00    105,600.00 e a.        182,000.00 b.     204,000.00 b.      12,400.00 c.     352,000.00 c.      34,000.00 e     105,600.00 d.      74,400.00 End. Bal.        183,600.00 End. Bal.        51,600.00 End. Bal.      42,000.00 Cost of Goods Sold Factory Labor Finished Goods Beg. Bal.        324,000.00 Beg. Bal.                       -          386,000.00 c. Beg. Bal.    240,000.00 f.    610,000.00 End. Bal.        324,000.00 End. Bal.        386,000.00 End. Bal.    850,000.00