Required: 1. Prepare journal entries to record the preceding transactions. 2. Post your entries to T-accounts. (Dont
Question:
Required:
1. Prepare journal entries to record the preceding transactions.
2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)
3. Prepare a schedule of cost of goods manufactured.
4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
4B. Prepare a schedule of cost of goods sold.
5. Prepare an income statement for the year.
1.
1. The raw materials were purchased for use in production, $225,000 on account.
2.The raw materials used in production (all direct materials), $210,000.
3.The utility bills were incurred on account, $58,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
4.The salary and wage costs accrued were $255,000 (Direct labor), $95,000 (Indirect labor), $135,000 (Selling and administrative salaries).
5. The maintenance costs were incurred on account in the factory, $59,000.
6.The advertising costs were incurred on account, $141,000.
7. The depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment).
8.The entry for rental cost incurred on account on buildings, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities).
9. The entry for manufacturing overhead cost applied to jobs.
10. The cost of goods manufactured for the year, $820,000.
11. The sales for the year (all on account) totaled $1,450,000.
12. The goods cost $850,000 according to their job cost sheets.
2.
3.
4A.
4b.
5.
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer