ANAG.M

Problem $4(35$ Points$)$

Hogle Company is a manufacturing firm. On January $1,$ the company's account

balances were as follows:

The following transactions were recorded during the month.

a$.$ Raw materials purchased on account, $$410,000.$

b$.$ Raw materials were requisitioned for use in production, $$380,000($ $$360,000$ direct and $$20,000$ indirect$).$

c$.$ The gross payroll is $$475,000.$ Payroll was paid to employees for the month.

d$.$ The distribution of the payroll was: direct labor, $$75,000$; indirect labor, $$110,000$; sales commissions expense, $$90,000$; and administrative salaries expense, $$200,000.$

e$.$ Sales travel expenses were incurred on account, $$17,000.$

f$.$ Utility costs were incurred on account in the factory, $$43,000.$

g$.$ Advertising expenses were incurred on account, $$180,000.$

h$.$ Depreciation was recorded for the month, $$350,000(80\%$ relates to factory operations, $10\%$ relates to selling, and $10\%$ administrative expense$).$

i$.$ Insurance expired during the month, relates to factory operations, $15\%$ relates to selling expense, and $15\%$ administrative expense$).$

j$.$ Factory overhead accumulated in the factory overhead account was transferred to the work in process account.

k$.$ Work completed and transferred to finished goods $$900,000.$

I. Goods were sold on account to customers during the month at a total selling price of $$1,500,000.$ The goods cost $$870,000$ to manufacture.

m$.$ Amount received from customers in payment of their accounts, $$490,000.$

Instructions

Enter the beginning balance from the Balance Sheet to $T$ Accounts.

Prepare the journal entries to record the transactions from $A$ to $M$ and post them to the T Accounts.

Prepare the following statements:

a$.$ Statement of Cost of Goods Manufactured

b$.$ Income Statement

c$.$ Balance Sheet

Problem $4(35$ Points$)$

Hogle Company is a manufacturing firm. On January $1,$ the company's account balances

were as follows:

The following transactions were recorded during the month.

a$.$ Raw materials purchased on account, $$410,000.$

b$.$ Raw materials were requisitioned for use in production, $$380,000($ $$360,000$ direct and $$20,000$ indirect$).$

$9$

c$.$ The gross payroll is $$475,000.$ Payroll was paid to employees for the month.

d$.$ The distribution of the payroll was: direct labor, $$75,000$; indirect labor, $$110,000$; sales commissions expense, $$90,000$; and administrative salaries expense, $$200,000.$

e$.$ Sales travel expenses were incurred on account, $$17,000.$

f$.$ Utility costs were incurred on account in the factory, $$43,000.$

g$.$ Advertising expenses were incurred on account, $$180,000.$

h$.$ Depreciation was recorded for the month, $$350,000(80\%$ relates to factory operations, $10\%$ relates to selling, and $10\%$ administrative expense$).$

i$.$ Insurance expired during the month, relates to factory operations, $15\%$ relates to selling expense, and $15\%$ administrative expense$).$

j$.$ Factory overhead accumulated in the factory overhead account was transferred to the work in process account.

k$.$ Work completed and transferred to finished goods $$900,000.$

I. Goods were sold on account to customers during the month at a total selling price of $$1,500,000.$ The goods cost $$870,000$ to manufacture.

m $.$ Amount received from customers in payment of their accounts, $$490,000.$

Instructions

Enter the beginning balance from the Balance Sheet to T Accounts.

Prepare the journal entries to record the transactions from $A$ to $M$ and post them to the T Accounts.

Prepare the following statements:

a$.$ Statement of Cost of Goods Manufactured

b$.$ Income