Fle Edt View áistory Bookmarks People Window Hep Project -30 Paints davrinah TV

Question

Fle Edt View áistory Bookmarks People Window Hep Project -30 Paints davrinah TV Apple COU, Facebook -ahee News Disney Popular ESPN ,,noorted Frem Sanan Casinonh of Cstom CebinetCoany unos a s odercot ystem with overhood spoplied as a percentage of drect labor costs, irventory batlances sat he beginning of 2016 follo Raw Materials Inventory Work in Process Inventory Firished Goods Invertory 17,000 The folowing transactions ocourred during January (a) Purchased materials on account for $26.400. D) Issued materls to production totaling $22,000, 90 percent of which was traced to speolfic jobs and the remainder of which was treseted as indiract materials (c) Payroll costs totaling $19,000 were recorded as follows: $11,300 for assembly workers 1,500 for factory supervision 2,800 foe administrative personnel 3,400 for sales commissions (d) Recorded depreciation $5,200 for machines, $600 for the oopier used in the administraßve office (a) Recorded $1,900 of expired insurance. Forty percent was insurance on the manutacturin Paid S4.900 in other tactory costs n cash. (a) Applied manufacturing overhead at a rato of 200 peroent of direct labor cost h) Completod al jobs but one; the job cost sheet for tris job shows $2,200 for direct materials, $2,500 for direct labor, and $5,000 for applied overhead 0) Sold jobs cosing $51,500. The revenue eamed on these jobs was $66.950 g facility, with the remainder classifled as an administrative expenso Required 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post all amounts separately. Do not combineladd any dollar amounts whan posting to the t-accounts a. Raw Matorials Inventory b. Work in Process Inventory c. Finished Goods Inventory d. Cost of Goods Sold e Seling General, and Administrative Expenses f. Sales Revenue. g. Other acoounts (Cash, Payables, etc.) 3 5 8

Explanation / Answer

Raw Material Inventory Work in process inventory Debit Credit Debit Credit Beg. Balance 17000 Beg. Balance 6300 (a) 26400 (b) 19800 (0.9*22000) (b) 22000 .(c) 11300 Ending Balance 21400 (17000+26400-22000) (g) 22600 (2*11300) (e) finished goods 50500 (6300+19800+11300+22600-9500) (e) Ending banlance 9500 (2000+2500+5000) Finished goods Inventory Cost of Goods Sold Debit Credit Debit Credit Beg. Balance 20500 (i) Finished goods 51500 (e)Work in progress 50500 Ending Balance 51500 (i)cost of goods sold 51500 Ending Balance 19500 (20500+50500-51500) Manufacturing Overhead Selling, General and Administrative expenses Debit Credit Debit Credit (b) 2200 (22000*0.1) .(c) 2800 .(c) 1500 .(c) 3400 (d) 5200 (d) 600 (e) 760 (1900*0.4) (e) 1140 (0.6*1900) (f) 4900 Ending Balance 7940 (2800+3400+600+1140) (g) 22600 Ending balance 8040 (22600-2200-1500-5200-760-4900) Sales Revenue Accounts payable Debit Credit Debit Credit (i) 66960 (a) 26400 Cash Debit Credit .(c) 19000 (f) 4900 (i) 66960 2 Gross Profit Before Adjustment of Overapplied Overhead Sales 66960 Cost of goods sold 51500 Gross Profit 15460 (66960-51500) 3 Overapplied Overhead 8040 4 Gross Profit without adjustement 15460 Overapplied overhead 8040 Adjusted gross profit 23500 (15460+8040)

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.