Aponi Products, Inc. uses a job-order costing system. The company's Inventory balances on August 1, the...
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Aponi Products, Inc. uses a job-order costing system. The company's Inventory balances on August 1, the start of its fiscal year, were as follows: Raw materials work in process Finished goods $55,500 57,500 During the year, the following transactions were completed: a. Raw materials were purchased on account, $210,000. b. Raw materials were issued from the storeroom for use in production, $230,000 (80% direct and 20% Indirect). c. Employee salaries and wages were accrued as follows: direct labour, $230,000; Indirect labour, $92,500; selling and administrative salaries, $160,000. d. Utility costs were incurred in the factory, $87,500. e. Advertising costs were incurred, $82,500. Prepaid insurance expired during the year, $27,000 (75% related to factory operations, and 25% related to selling and administrative activities). g. Depreciation was recorded, $180,000 (80% related to factory assets, and 20% related to selling and administrative assets). h. Manufacturing overhead was applied to jobs at the rate of 150% of direct labour cost. 1 Goods that cost $809,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Sales for the year totalled $1123,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $785,000. Required: 1. Prepare journal entries to record the transactions for the year. (If no entry is required for a particular transaction, select "No journal entry required" In the first account field.) Vew trachon lat Journal entry worksheet 2 3 4 Record raw material purchase on account. Note: Enter debits before credits Transaction A 11 > General Journal Debit Credit Record entry Clear entry View general journal 2. Prepare T-accounts for raw materials, work in process, finished goods, manufacturing overhead and cost of goods sold. Post the appropriate parts of your journal entries to these T-accounts. Compute the ending balance in each account. (Do not forget to enter the beginning balances in the Inventory accounts.) Beg, bal. End. bal. Raw Material Work In Proo Bog. bal. End. bal. End. bal. Cost of Goods Bold Finished Goods Beg. bal End. bal. End. bal. 3-a. Is manufacturing overhead underspplied or overspplied for the year? Manufacturing overhead is Manufacturing Overhead 3-b. Prepare a journal entry to close this balance to cost of goods sold. (If no entry is required for a particular transaction, select "No journal entry required" In the first account field.) Yew to l Journal entry worksheet < Record entry to write off over or underapplied overhead to cost of goods sold. Aponi Products, Inc. uses a job-order costing system. The company's Inventory balances on August 1, the start of its fiscal year, were as follows: Raw materials work in process Finished goods $55,500 57,500 During the year, the following transactions were completed: a. Raw materials were purchased on account, $210,000. b. Raw materials were issued from the storeroom for use in production, $230,000 (80% direct and 20% Indirect). c. Employee salaries and wages were accrued as follows: direct labour, $230,000; Indirect labour, $92,500; selling and administrative salaries, $160,000. d. Utility costs were incurred in the factory, $87,500. e. Advertising costs were incurred, $82,500. Prepaid insurance expired during the year, $27,000 (75% related to factory operations, and 25% related to selling and administrative activities). g. Depreciation was recorded, $180,000 (80% related to factory assets, and 20% related to selling and administrative assets). h. Manufacturing overhead was applied to jobs at the rate of 150% of direct labour cost. 1 Goods that cost $809,500 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. J. Sales for the year totalled $1123,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $785,000. Required: 1. Prepare journal entries to record the transactions for the year. (If no entry is required for a particular transaction, select "No journal entry required" In the first account field.) Vew trachon lat Journal entry worksheet 2 3 4 Record raw material purchase on account. Note: Enter debits before credits Transaction A 11 > General Journal Debit Credit Record entry Clear entry View general journal 2. Prepare T-accounts for raw materials, work in process, finished goods, manufacturing overhead and cost of goods sold. Post the appropriate parts of your journal entries to these T-accounts. Compute the ending balance in each account. (Do not forget to enter the beginning balances in the Inventory accounts.) Beg, bal. End. bal. Raw Material Work In Proo Bog. bal. End. bal. End. bal. Cost of Goods Bold Finished Goods Beg. bal End. bal. End. bal. 3-a. Is manufacturing overhead underspplied or overspplied for the year? Manufacturing overhead is Manufacturing Overhead 3-b. Prepare a journal entry to close this balance to cost of goods sold. (If no entry is required for a particular transaction, select "No journal entry required" In the first account field.) Yew to l Journal entry worksheet < Record entry to write off over or underapplied overhead to cost of goods sold.
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Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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