Ladco Inc. is a manufacturing firm that uses job-order costing. During the month, the following transactions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ladco Inc. is a manufacturing firm that uses job-order costing. During the month, the following transactions occurred: a. Purchased raw materials for $150,000 on account. b. Used materials of $130,000 in the production process. Of this amount, $125,000 was considered direct materials. c. Incurred labor costs of $252,000 in the factory. The factory supervisor salary was $70,000; the remainder related to the production line workers assembling the product. The accountant set up an accrual for the amount owing to employees. (Use wages payable) d. Monthly depreciation on the factory equipment totaled $10,000. e. Other factory wages were incurred relating to the security and janitorial personnel. These salaries totaled $20,000 which were accrued by the accountant. (Use wages payable) f. The accountant allocated overhead for the month. The company uses a normal costing system and allocates overhead based on direct labor cost. At the start of the year, the company had estimated total overhead of $560,000 and direct labor hours of 100,000. The company's direct labor rate per hour is $14.00 g. The company's cost of goods manufactured for the month was 425,000. h. The company had total sales on account of $850,000, the cost of these products was $435,000. Required: Journalize the transactions above. (use letter references instead of dates) Ladco Inc. is a manufacturing firm that uses job-order costing. During the month, the following transactions occurred: a. Purchased raw materials for $150,000 on account. b. Used materials of $130,000 in the production process. Of this amount, $125,000 was considered direct materials. c. Incurred labor costs of $252,000 in the factory. The factory supervisor salary was $70,000; the remainder related to the production line workers assembling the product. The accountant set up an accrual for the amount owing to employees. (Use wages payable) d. Monthly depreciation on the factory equipment totaled $10,000. e. Other factory wages were incurred relating to the security and janitorial personnel. These salaries totaled $20,000 which were accrued by the accountant. (Use wages payable) f. The accountant allocated overhead for the month. The company uses a normal costing system and allocates overhead based on direct labor cost. At the start of the year, the company had estimated total overhead of $560,000 and direct labor hours of 100,000. The company's direct labor rate per hour is $14.00 g. The company's cost of goods manufactured for the month was 425,000. h. The company had total sales on account of $850,000, the cost of these products was $435,000. Required: Journalize the transactions above. (use letter references instead of dates)
Expert Answer:
Answer rating: 100% (QA)
a Raw Material AC DR 150000 TO Supplier AC 150000 CR Being credit purchase of raw materials was brou... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these accounting questions
-
FAimore Corporation is a manufacturing hrm that follows at the beginning and end of the yean 0-order costung The companys inventon balances were as Ending Balance Beginning Balance Raw materials...
-
The adjusted trial balance of John Co. for the year ending December 31, 2025, contains the following. Cash Accounts Receivable Prepaid Rent John Co. Adjusted Trial Balance December 31, 2025 Equipment...
-
Geddy, Inc., is a manufacturing firm that manufactures two types of boat engines. The Type A engine is designed for a specific type of cruise ship. Because of a long-term commitment with a cruise...
-
Automobiles air bags are filled via the decomposition of sodium azide, according to the following equation: 2 NaN3 (s) 2 Na (s) +3 N2 (g) Calculate the work (in L atm) when 2.25 g of sodium azide...
-
While we often think of Pirates as a thing of the past, piracy in international waters has been on the rise. Typically, pirates seize a commercial vessel and then demand a monetary ransom to let go...
-
Refer to the Aquatic Biology (Vol. 9, 2010) study of green sea turtles inhabiting the Grand Cayman South Sound lagoon, Exercise. Researchers discovered that the curved carapace (shell) length of...
-
Fill in the Blank. Phase marks are used in ____________ plane balancing using a vibration analyzer.
-
Listed below are five procedures followed by Eikenberry Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank reconciliation is prepared by...
-
Dylan and Dusty plan to take weekly surfing lessons together. If the 2-hour lessons are $40 per person and they plan to spend $100 each on new surfboards, what is the maximum number of lessons the...
-
APC, Inc is a venture capital firm that invests in new businesses to help them grow. Wyatt Newark owns and serves as a chef at Earp's, a restaurant with a Western design that he operates as a sole...
-
The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows: Cash and marketable Short-term debt 2,300 76,400 securities Accounts payable Accounts...
-
Given the change() method below: public static void change(char[] array, int index1, int index2) { char temp = array[index2]; array[index1] = array[index2]; array[index2] = temp; } What would be the...
-
Nami, the navigator of the Straw Hat Pirates, jumps on her waver to ride from their boat to the shore of the closest island, which is 230.0 m away from the Going Merry. If she started from rest and...
-
What technique(s) would you use to employ a PFAS with a 6 foot shock absorbing lanyard with 3.5 foot deceleration distance, for a work that was around 6 foot tall, if the distance to the lower...
-
Colour operations are, for the most part, point operations. We saw in Assignment 1 that we can use look-up tables to speed up these operations, especially where we might have to perform many complex,...
-
Create a Java class that will accept a number from the user The input number must be a positive number greater than 99. Your class must include a method that is called from main The method must...
-
According to Lynn Turner, the former chief accountant at the Securities and Exchange Commission (SEC), history tells corporate scandals occur about every how many years?
-
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
-
At the start of this chapter, you learned a little about Safeway and its history. Now lets look at the companys financial performance in recent years. Refer to Safeways income statement (on page 35),...
-
In June 2012, Hatch Company had no investment securities but had excess cash that would not be needed for nine months. Management decided to use this money to purchase trading securities as a...
-
By encouraging employees to work harder and to increase quality, are companies lowering overall costs, or are they increasing waste and inefficiency of materials? You have just been hired to work as...
-
The hydrodynamic boundary layer equations consist of one momentum equation and the continuity equation. How does one solve for the pressure?
-
How does the hydrodynamic boundary layer thickness depend upon the Reynolds number?
-
If the liquid has a high thermal conductivity, the heat transfer coefficient depends on \(\mathrm{Pr}^{1 / 2}\). What is the root cause of the increase dependence on \(\mathrm{Pr}\) ?
Study smarter with the SolutionInn App