Question

Consider the following data for Birmingham Printing Company (in thousands):
Inventories, December 31, 2011
Direct materials ...... £ 12
Work in process ..... 20
Finished goods ..... 130

Summarized transactions for 2012 are as follows:
a. Purchases of direct materials .............. £ 74
b. Direct materials used ................. 52
c. Direct labor .................... 200
d. Factory overhead incurred .............. 156
e. Factory overhead applied, 80% of direct labor cost ....... ?
f. Cost of goods completed and transferred to finished goods . 417
g. Cost of goods sold .................. 532
h. Sales on account ................... 742

1. Prepare summary journal entries for 2012 transactions. Omit explanations.
2. Show the T-accounts for all inventories, Cost of Goods Sold, and Factory Department Overhead Control. Compute the ending balances of the inventories. Do not adjust for underapplied or over-applied factory overhead.



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  • CreatedNovember 19, 2014
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