A partial list of the account balances on November 1,2020, for the Don Manufacturing Company were...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A partial list of the account balances on November 1,2020, for the Don Manufacturing Company were Materials Inventory (Direct and Indirect) $73,000; Work in Process, $70,000; and Finished Goods, $88,000; Transactions for the month include the following: 1. Purchased direct materials costing $30,000and indirect materials costing $10,000 on account. 2. Paid cash for the factory rent, $1,500. 3. Issued material costing $28,160 to three jobs for the processing of units. 4. Janitorial supplies costing $1,080 and repair supplies costing $5,780 were issued from the storeroom. 5. Analysis of the payroll records revealed that direct labor of $43,000, indirect labor of $26,000, marketing salaries of $5,000, and administrative salaries of $6,000 were to be recorded. Ignore payroll deductions. 6. Depreciation on the factory machinery amounted to $2,770 and on the factory building to $2,850. 7. Insurance of $500 expired on the factory building and machinery. 8. The cost accounted budgeted factory overhead for the year to be $450,000 and machine-hours to be 90,000.Machine-hours for November were 8,000. Record the application of the overhead. 9. Paid cash for miscellaneous factory overhead of $330. 10. There were 3,000 finished units costing $150,000 transferred into the warehouse. 11. During the month, 4,000 units costing $200,000 were sold on account for $300,000. 12. Other marketing expenses of $3,000 and administrative expenses of $4,600 were paid. Required: a. Prepare journal entries to record the transactions for the month, using a control account for the overhead. (28 puan) b. Prepare a cost of goods manufactured statement using applied factory overhead costs.(10 puan) c. Prepare an income statement for the month. (7 Puan) A partial list of the account balances on November 1,2020, for the Don Manufacturing Company were Materials Inventory (Direct and Indirect) $73,000; Work in Process, $70,000; and Finished Goods, $88,000; Transactions for the month include the following: 1. Purchased direct materials costing $30,000and indirect materials costing $10,000 on account. 2. Paid cash for the factory rent, $1,500. 3. Issued material costing $28,160 to three jobs for the processing of units. 4. Janitorial supplies costing $1,080 and repair supplies costing $5,780 were issued from the storeroom. 5. Analysis of the payroll records revealed that direct labor of $43,000, indirect labor of $26,000, marketing salaries of $5,000, and administrative salaries of $6,000 were to be recorded. Ignore payroll deductions. 6. Depreciation on the factory machinery amounted to $2,770 and on the factory building to $2,850. 7. Insurance of $500 expired on the factory building and machinery. 8. The cost accounted budgeted factory overhead for the year to be $450,000 and machine-hours to be 90,000.Machine-hours for November were 8,000. Record the application of the overhead. 9. Paid cash for miscellaneous factory overhead of $330. 10. There were 3,000 finished units costing $150,000 transferred into the warehouse. 11. During the month, 4,000 units costing $200,000 were sold on account for $300,000. 12. Other marketing expenses of $3,000 and administrative expenses of $4,600 were paid. Required: a. Prepare journal entries to record the transactions for the month, using a control account for the overhead. (28 puan) b. Prepare a cost of goods manufactured statement using applied factory overhead costs.(10 puan) c. Prepare an income statement for the month. (7 Puan)
Expert Answer:
Answer rating: 100% (QA)
a Journal entries for the transactions 1 Purchased direct materials costing 30000 and indirect materials costing 10000 on account Materials Inventory ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Graham Douglas is a guard dog training business based in Coventry, the United Kingdom. The business trains and sells different breeds of guard dogs. The dogs are usually purchased from local dog...
-
The following data refer to Maximus Manufacturing Ltd for the current years: Required: Prepare Maximus manufacturings: 1. Schedule of cost of goods manufactured. 2. Schedule of cost of goods sold. 3....
-
The following is a partial list of the account balances, after adjustments, of the Silvoso Company on December 31, 2007: The following information is also available: 1. The company declared and paid...
-
The accompanying data were read from graphs that appeared in the article Bush Timber Proposal Runs Counter to the Record (San Luis Obispo Tribune, September 22, 2002). The variables shown are the...
-
In Figure a physical pendulum consists of a uniform solid disk (of radius R = 2.35 cm) supported in a vertical plane by a pivot located a distance d = 1.75 cm from the center of the disk. The disk is...
-
Find the wavelength of radiation whose photons have energy equal to the band gap of GaAs.
-
Two businesses are considering how to raise \(\$ 5\) million. Buchanan Corporation is having its best year since it began operations in 1998 . For each of the past 10 years, earnings per share have...
-
Refer to the Buena School District bus data. First, add a variable to change the type of bus (diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative...
-
(b) Find I dx. Hint: x = sin
-
Calls for WI and IL both arrive at the Log call process in two separate streams as follows: WI calls: Arrive in a defined daily pattern of 20 calls per hour during the 8 hour period on Monday between...
-
Compute (showing a complete derivation) the Fenchel conjugates of the following functions. 2. 4-1,0] (the indicator function of the interval [-1,0]). 3. {a} (the indicator function of the singleton...
-
Describe the three broad elements of the balanced scorecard approach to measure corporate performance.
-
In Winkelman, the Supreme Court found that parents could proceed in an IDEA appeal in court without an attorney, because they were representing their own interests. Before the decision, the vast...
-
What are the principal steps of the foreign exchange risk management process?
-
What are the differences between two-variance and three-variance analysis of indirect manufacturing costs? What are the variances computed in each case, and how are they calculated?
-
Define balanced scorecard. What are the three areas it specifically balances?
-
Jim and Jane would like to purchase a home theatre system for their newly renovated home. After extensive research online and visiting at a few local electronics store, they would like to purchase...
-
Dan and Diana file a joint return. Dan earned $31,000 during the year before losing his job. Diana received Social Security benefits of $5,000. a. Determine the taxable portion of the Social Security...
-
Framar Inc. manufactures automation machinery according to customer specifications. The company is relatively new and has grown each year. Framar operated at about 75% of practical capacity during...
-
Standard direct labor hours budgeted by Turner Company for February production were 2,000. Factory overhead at that level was budgeted at $10,000, of which $3,000 is variable. Actual direct labor...
-
Is it generally true that all wage payments are ultimately limited by and are usually based, directly or indirectly, on the productivity of the worker? Explain.
-
Find the steady-state response of the hydraulic control valve shown in Fig. 4.4 (a) to the forcing functions obtained by replacing \(x(t)\) with \(F(t)\) and \(A\) with \(F_{0}\) in Figs. 1.114....
-
What is the basis for expressing the response of a system under periodic excitation as a summation of several harmonic responses?
-
True or False. The change in momentum is called impulse.
Study smarter with the SolutionInn App