Chapter 1 MANUFACTURING CONCERN - NON-COST SYSTEM B-1-10 Additional information as of end of quarter. The "Toy Factory" started business two years ago. The ledger shows the 1. Inventories following balances as of December 31, 20X4: Goods in Process P151,000 Raw Materials 205,000 Cash 100,300 Finished Goods 400,000 Account Receivables 270,000 Unused Factory Supplies 8,000 Finished Goods Inventory 260,300 Property and Equipment have estimated life of 10 years, no scrap value. Goods in Process Inventory 160.000 Bad Debts is 1% of net sales. Raw Materials Inventory 155,000 Expenses to be apportioned: Light, water, and power, rent, insurance, Allowance for Bad Debts 20,000 taxes as follows: Machinery -510,000 Manufacturing - -60% Accumulated Depreciation-Machinery Selling 20% 1 10,000 20% Office Equipment 145,000 General Accumulated Depreciation-Office Equipment 14,500 Required: Delivery Equipment 950,000 Accumulated Depreciation-Delivery Equipment -460,000 Accounts Payable $10,000 4. Balance Sheet Ron, Capital 1,000.000 5. Adjusting Entries Ron, Drawing 90,000 6. Closing Entries Sales 4,036,000 Purchases-Raw Materials 1,500,400 Direct Labor -- 810,000 Indirect Labor 120,000 Light, Water and Power #105,000 Rent 160,000 Insurance 20,000 Taxes 130,000 Supplies Expense-Factory 45,000 Miscellaneous Factory Expenses 36,000 Office Salaries 90,000- Supplies Expenses 30,000 Miscellaneous General Expenses 40,000 Sales Salaries 120,000 Supplies Expense-Selling 30,000 Advertising 40,000 Salesmen's Commission 120,300 Miscellaneous Selling Expenses 113,200 P 6,150,500 P6, 150,500