Question

Lundberg Company had the following trial balance columns on its work sheet:

.:.

Data for adjusting the accounts are as follows:
(a) Factory overhead to be applied to work in process ending inventory ..... $3,100
(b) Interest receivable .............................. 75
(c) Interest payable .................................. 600
(d) Estimate of uncollectible accounts, based on an aging
of accounts receivable .......................... 2,930
(c) Office supplies consumed ......................... 2,900
(f) Factory supplies consumed .......................... 3,300
(g) Factory building depreciation ........................ 5,000
(h) Factory equipment depreciation ....................... 4,000
(1) Overapplied factory overhead ....................... 1,470
(j) Provision for corporate income taxes .................... 6,100
(k) Physical counts of the inventories agreed with the amounts in the books.
Additional information needed to prepare the financial statements is as follows:
Beginning inventories:
Finished goods, January 1 ................... $18,000
Work in process, January 1 .................. 7,300
Materials inventory, January 1 ................ 9,500
Materials purchases for the year ................ 51,500
Direct labor ........................ 60,000
Actual factory overhead ................. .. 90,930
Indirect materials charged to production ........... 3,400

Required
1. Prepare a work sheet
2. Prepare the following financial statements and schedule:
(a) Income statement
(b) Schedule of cost of goods manufactured
(c) Statement of retained earnings
(d) Balance sheet


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  • CreatedJune 07, 2014
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