Budenmayer BV is a small machine shop that uses highly skilled labor and a job costing system (using normal costing) The total debits and credits in certain accounts just before year end are as follows All materials purchased are for direct materials Note that 'total debits ' in the stock accounts would include beginning stock balances, if any The preceding accounts do not include the following a The manufacturing labor costs recapitulation for the 31 December working day direct manufacturing labor, not 5000 and indirect manufacturing labor, not 1000 b Miscellaneous manufacturing overhead incurred on 30 December and 31 December not 1000 Additional information cent Manufacturing overhead has been allocated as a percentage of direct manufacturing labor costs through 30 December cent Direct materials purchased during 2007 were not 85000 cent There were no returns to suppliers cent Direct manufacturing labor costs during 2007 totaled not 150 000, not including the 31 December working day described previously Required 1 Calculate the stock (31 December 2006) of Materials Control, Work in Progress Control and Finished Goods Control Show T accounts 2 Prepare all adjusting and closing journal entries for the preceding accounts Assume that all under or over allocated manufacturing overhead is closed directly to Cost of Goods Sold 30 December 2007 Total debits Total credits Materials Control Work in Progress Control Manufacturing Department Overhead Control Finished Goods Control Cost of Goods Sold Manufacturing Overhead Allocated 100000 320000 85000 325 000 300000 70000 305 000 300000 90000

Question: Budenmayer BV is a small machine shop that uses highly skilled labor and a job-costing system (using normal costing). The total debits and credits in

Budenmayer BV is a small machine shop that uses highly skilled labor and a job-costing system (using normal costing). The total debits and credits in certain accounts just before year-end are as follows:

All materials purchased are for direct materials. Note that 'total debits' in the stock accounts would include beginning stock balances, if any.
The preceding accounts do not include the following:
a. The manufacturing labor costs recapitulation for the 31 December working day: direct manufacturing labor, ‚¬5000 and indirect manufacturing labor, ‚¬1000.
b. Miscellaneous manufacturing overhead incurred on 30 December and 31 December ‚¬1000.
Additional information
€¢ Manufacturing overhead has been allocated as a percentage of direct manufacturing labor costs through 30 December.
€¢ Direct materials purchased during 2007 were ‚¬85000.
€¢ There were no returns to suppliers.
€¢ Direct manufacturing labor costs during 2007 totaled ‚¬150 000, not including the 31 December working day described previously.
Required
1. Calculate the stock (31 December 2006) of Materials Control, Work-in-Progress Control and Finished Goods Control. Show T-accounts.
2. Prepare all adjusting and closing journal entries for the preceding accounts. Assume that all under- or over allocated manufacturing overhead is closed directly to Cost of Goods Sold.

30 December 2007 Total debits Total credits Materials Control Work-in-Progress Control Manufacturing Department Overhead Control Finished Goods Control Cost of Goods Sold Manufacturing Overhead Allocated 100000 320000 85000 325 000 300000 70000 305 000 300000 90000