Dream Toys Company manufactures video game consoles and accounts for product costs using process costing. The following information is available regarding its June inventories. The
.png)
The following additional information describes the company€™s production activities for June.
Raw materials purchases (on credit) . . . . . . . . . . . . . . . . . . . $ 200,000
Factory payroll cost (paid in cash) . . . . . . . . . . . . . . . . . . . . . 400,000
Other overhead cost (Other Accounts credited) . . . . . . . . . 170,500
Materials used Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 120,000
Indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000
Labor used Direct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000
Indirect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Overhead rate as a percent of direct labor . . . . . . . . . . . . . . 75%
Sales (on credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000
Required
1. Compute the cost of
(a) Products transferred from production to finished goods,
(b) Goods sold.
2. Prepare journal entries dated June 30 to record the following production activities during June:
(a) Raw materials purchases,
(b) Direct materials usage,
(c) Indirect materials usage,
(d) Payroll costs,
(e) Direct labor costs,
(f) Indirect labor costs,
(g) Other overhead costs,
(h) Overhead applied,
(i) Goods transferred from production to finished goods,
(j) Sale of finishedgoods.
Beginning Ending Inventory Inventory $72,000 $1 10,000 156,000 250,000 198,000 Raw materials inventory.7 Goods in process inventory Finished goods inventory Y..1 160,000 98
Step by Step Solution
3.40 Rating (172 Votes )
There are 3 Steps involved in it
Part 1 Cost of goods transferred and cost of goods sold Beginning goods in process inventory 156000 ... View full answer
Get step-by-step solutions from verified subject matter experts
100% Satisfaction Guaranteed-or Get a Refund!
Document Format (1 attachment)
267-B-M-A-P-C (1390).docx
120 KBs Word File
See step-by-step solutions with expert insights and AI powered tools for academic success
-
Access 30 Million+ textbook solutions.
-
Ask unlimited questions from AI Tutors.
-
Order free textbooks.
-
100% Satisfaction Guaranteed-or Get a Refund!
Claim Your Hoodie Now!
Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
Study Smart with AI Flashcards
Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge
Explore Flashcards
Study Help
