Print a. Design Company produces gadgets for the coveted small appliance market. The folowing data reflect...

          

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Print a. Design Company produces gadgets for the coveted small appliance market. The folowing data reflect activity for the year 2017: 17(Click the icon to view the data.) Design Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.80 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Read the requirements18. Requirement 1. Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $125,000. Journal Entry Accounts Debit Credit (1.) (1) (2) (3) (4) Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (5) (7) (9) (1.) (6) (8) (10) (11) (13) (12) (14) Prir 17: Data Table Costs incurred: Purchases of direct materials (net) on credit $ 125,000 Direct manufacturing labor cost 83,000 Indirect labor 54,400 Depreciation, factory equipment 37,000 Depreciation, office equipment 7,700 Maintenance, factory equipment 24,000 Miscellaneous factory overhead 9,100 Rent, factory building 73,000 Advertising expense 95,000 Sales commissions 32,000 Inventories: January 1, 2017 December 31, 2017 Direct materials $ 9,400 $ 19,000 Work in process 6,800 25,000 Finished goods 68,000 25,000 18: Requirements Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated overhead to cost of goods sold, For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account. 1. 2. Print Record the direct materials used. Journal Entry Accounts Debit Credit (15) (16) (17) (18) (2.) Now select the appropriate source documents and subledgers for the direct materials used. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (19) (21) (23) (25) (2.) (20) (22) (24) (26) (28) (27) Record the direct and indirect labor payable in a single entry, $83,000 and $54,400 respectively. Journal Entry Accounts Debit Credit (3.) (29) (30) (31) (32) Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.) Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (3.) (33) (34) (36) (35) (37) (38) (40) (42) (39) (41) Print Prepare a consolidated entry to record the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and the miscellaneous factory overhead payable. Journal Entry Accounts Debit Credit (4.) (43) (44) (45) (46) (47) Now select the appropriate source documents and subledgers for the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and the miscellaneous factory overhead transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers |(49) (51) (53) (55) (4.) (48) (50) (52) (54) (56) (57) Record the manufacturing overhead allocated. Print Journal Entry Accounts Debit Credit (5.) (58) (59) (60) (61) Now select the appropriate source documents and subledgers for the manufacturing overhead allocated transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (5.) (62) (64) (66) (68) (70) (63) (65) (67) (69) (71) Record the transfer of completed jobs. Journal Entry Accounts Debit Credit (6.) (72) (73) (74) (75) Now select the appropriate source documents and subledgers for the transfer of completed job transaction. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (76) (78) (77) (79) (81) (6.) (80) (82) (84) (83) (85) Record the cost of goods sold. Journal Entry Accounts Debit Credit (7.) (86) (87) (88) (89) Now select the appropriate source documents and subledgers for the cost of goods sold transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (90) (91) (93) (95) (97) (7.) (92) (94) (96) (98) (99) Prepare a consolidated entry to record the depreciation on office equipment, the commissions payable and the advertising payable, Journal Entry Accounts Debit Credit (100) (101) (102) (103) (104) (105) (8.) Now select the appropriate source documents and subledgers for the depreciation on office equipment, the commissions and the advertising transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (8.) (106) (108) (110) (112) (114) (107) (109) (111) (113) (115) Dispose of over- or underallocated manufacturing overhead. Journal Entry Accounts Debit Credit (9.) (116) (117) (118) (119) Now select the appropriate source documents and subledgers for the over- or underallocated manufacturing overhead transaction. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (120) (122) (124) (126) (128) (121) (123) (125) (9.) (127) (129) Print Requirement 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Contror Account, and the Manufacturing Overhead Allocated Account. Post entries (1) through (9) to the accounts below, then calculate the ending balance in each account. (For accounts with a $0 balance, leave the balance cells blank.) Review the journal entries from requirement 1. Materials Work-in-Process Manufacturing Control Control Overhead Control (130 (131) (132) (133) Bal. 9,400 Bal. 6,800 (134 (135) (136) (137 (138) (139) (140 (141 (142) (143) (144) (145) (146 (147 (148) (149) (150) (151) Bal. Bal. Bal. Bal, Bal. Bal. Manufacturing Overhead Allocated Finished Goods Cost of Goods Sold (154 68,000 (156) (152 (153) (155) Bal. (157 (158) (159) (160) (161) (162) (163 (164) (165) (166) (167) (168) (169 (170 (171) (172) (173) (174) Bal. Bal. Bl. Bl. Bal. Bl. Print a. Design Company produces gadgets for the coveted small appliance market. The folowing data reflect activity for the year 2017: 17(Click the icon to view the data.) Design Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.80 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Read the requirements18. Requirement 1. Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $125,000. Journal Entry Accounts Debit Credit (1.) (1) (2) (3) (4) Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (5) (7) (9) (1.) (6) (8) (10) (11) (13) (12) (14) Prir 17: Data Table Costs incurred: Purchases of direct materials (net) on credit $ 125,000 Direct manufacturing labor cost 83,000 Indirect labor 54,400 Depreciation, factory equipment 37,000 Depreciation, office equipment 7,700 Maintenance, factory equipment 24,000 Miscellaneous factory overhead 9,100 Rent, factory building 73,000 Advertising expense 95,000 Sales commissions 32,000 Inventories: January 1, 2017 December 31, 2017 Direct materials $ 9,400 $ 19,000 Work in process 6,800 25,000 Finished goods 68,000 25,000 18: Requirements Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated overhead to cost of goods sold, For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account. 1. 2. Print Record the direct materials used. Journal Entry Accounts Debit Credit (15) (16) (17) (18) (2.) Now select the appropriate source documents and subledgers for the direct materials used. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (19) (21) (23) (25) (2.) (20) (22) (24) (26) (28) (27) Record the direct and indirect labor payable in a single entry, $83,000 and $54,400 respectively. Journal Entry Accounts Debit Credit (3.) (29) (30) (31) (32) Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.) Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (3.) (33) (34) (36) (35) (37) (38) (40) (42) (39) (41) Print Prepare a consolidated entry to record the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and the miscellaneous factory overhead payable. Journal Entry Accounts Debit Credit (4.) (43) (44) (45) (46) (47) Now select the appropriate source documents and subledgers for the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and the miscellaneous factory overhead transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers |(49) (51) (53) (55) (4.) (48) (50) (52) (54) (56) (57) Record the manufacturing overhead allocated. Print Journal Entry Accounts Debit Credit (5.) (58) (59) (60) (61) Now select the appropriate source documents and subledgers for the manufacturing overhead allocated transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (5.) (62) (64) (66) (68) (70) (63) (65) (67) (69) (71) Record the transfer of completed jobs. Journal Entry Accounts Debit Credit (6.) (72) (73) (74) (75) Now select the appropriate source documents and subledgers for the transfer of completed job transaction. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (76) (78) (77) (79) (81) (6.) (80) (82) (84) (83) (85) Record the cost of goods sold. Journal Entry Accounts Debit Credit (7.) (86) (87) (88) (89) Now select the appropriate source documents and subledgers for the cost of goods sold transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (90) (91) (93) (95) (97) (7.) (92) (94) (96) (98) (99) Prepare a consolidated entry to record the depreciation on office equipment, the commissions payable and the advertising payable, Journal Entry Accounts Debit Credit (100) (101) (102) (103) (104) (105) (8.) Now select the appropriate source documents and subledgers for the depreciation on office equipment, the commissions and the advertising transactions. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (8.) (106) (108) (110) (112) (114) (107) (109) (111) (113) (115) Dispose of over- or underallocated manufacturing overhead. Journal Entry Accounts Debit Credit (9.) (116) (117) (118) (119) Now select the appropriate source documents and subledgers for the over- or underallocated manufacturing overhead transaction. (Only complete the necessary answer boxes.) Source documents Subsidiary ledgers (120) (122) (124) (126) (128) (121) (123) (125) (9.) (127) (129) Print Requirement 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Contror Account, and the Manufacturing Overhead Allocated Account. Post entries (1) through (9) to the accounts below, then calculate the ending balance in each account. (For accounts with a $0 balance, leave the balance cells blank.) Review the journal entries from requirement 1. Materials Work-in-Process Manufacturing Control Control Overhead Control (130 (131) (132) (133) Bal. 9,400 Bal. 6,800 (134 (135) (136) (137 (138) (139) (140 (141 (142) (143) (144) (145) (146 (147 (148) (149) (150) (151) Bal. Bal. Bal. Bal, Bal. Bal. Manufacturing Overhead Allocated Finished Goods Cost of Goods Sold (154 68,000 (156) (152 (153) (155) Bal. (157 (158) (159) (160) (161) (162) (163 (164) (165) (166) (167) (168) (169 (170 (171) (172) (173) (174) Bal. Bal. Bl. Bl. Bal. Bl.

Answer rating: 100% (QA)

No of Event Account Title and Explanation Debit Credit 1 Direct materials control 121000 Accounts pa... View the full answer