The following information is taken from the records of Simmons Corporation on May 31 of the current year.

The accounts and balances needed to complete this problem are provided in the Working Papers.

a. The total factory payroll for the month according to the payroll register is \($77,430.00,\) distributed as follows.

b. The total of all requisitions of direct materials issued during the month is \($64,344.00.\) The total of all requisitions of indirect materials issued during the month is \($5,835.00.\)

c. The factory overhead to be charged to Work in Process is 80% of the direct labor cost.

d. The total of all cost sheets completed during the month is \($166,425.00.\) 

e. The total of costs recorded on all sales invoices for May is \($258,705.00.\)

Instructions:

1. Journalize the factory payroll entry on page 10 of a cash payments journal. C711. Post the general debit and general credit amounts.
2. Journalize the following entries on page 5 of a general journal. Post the debit and credit amounts.

a. An entry to transfer the total of all direct materials requisitions to Work in Process and indirect materials to Factory Overhead. M211.

b. An entry to close all individual manufacturing expense accounts to Factory Overhead. M212.

c. An entry to record applied factory overhead to Work in Process. M213.

3. Continue using page 5 of the general journal. Journalize and post the entry to close the balance of the factory overhead account to Income Summary. M214.

4. Journalize and post the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. M215.

5. Journalize and post the entry to transfer the cost of products sold from Finished Goods to Cost of Goods Sold. M216.

6. Prepare a statement of cost of goods manufactured for the month ended May 31 of the current year.

Transcribed Image Text:

Work in Process $58,160.00 Factory Overhead 19,270.00 Cash 62,608.10 Employee Income Tax Payable Social Security Tax Payable Medicare Tax Payable $8,627.50 5,032.95 1,161.45