Downstate Electric Company manufactures specialized parts used in the generation of power. Initially, the company manufactured...
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Downstate Electric Company manufactures specialized parts used in the generation of power. Initially, the company manufactured the parts for its own use, but it gradually began selling them to other public utilities as well. The trial balance of Downstate Electric's manufacturing operations on January 1, 2020 of the current year follows: M.7). MA. ACCOUNT NAME Cash ✔ Account receivable Raw materials inventory Work in process inventory Finished goods inventory Property plant & Equipment(PPE) Accumulated depreciation DOWNSTATE ELECTRIC COMPANY MANUFACTURING OPERATIONS TRIAL BALANCE JANUARY 1 2020 DEBIT Kshs. 33,000 65,860 18,910 (PPE) Accounts payable Wages payable Contributed capital-Ordinary shares Retained earnings Sales revenue Cost of goods sold Selling general administration expenses Total Petrochemicals Electronic parts Indirect materials Total 43,350 78,550 342,860 Kshs. 582,530 CREDIT JANUARY 1 BALANCES IN THE SUBSIDIARY LEDGERS WERE: Raw materials subsidiary ledger: Steel kshs. 4,730 5,280 7,800 1,100 kshs. 18.910 Kshs. 145,960 88,650 5,700 200,000 142,220 Kshs. 58,258 1| Page Work-in-process subsidiary ledger: kshs 43,350 Finished goods subsidiary ledger: Transformers kshs 35,770 Transmission lines 21,910 Switches 20,870 Total kshs. 78.550 Job 86: YEAR 2020 TRANSACTIONS ARE SUMMARIZED AS FOLLOWS: a) Materials purchased on credit: Steel kshs. 12,660 19,570 28,360 6,130 66,720 Petrochemicals, Electronic parts Indirect materials Total b) Materials used in production (requisitioned) Job 86: Petrochemicals Steel Total . Steel kshs. Job 87: Petrochemicals, Electronic parts Total Steel • Job 88: Petrochemicals Electronic parts Indirect materials Total- kshs. 1,580 3,400 kshs. 4.980 kshs 10,580, 9,870, 4,690 kshs. 25,140 ksh 2,930, 7,680, 29.920. 4,760 kshs. 45,290 c) Manufacturing wages Incurred during 2020 kshs. $2,080 of which kshs. 49,560 was paid. Wages payable at December 31 2019 were paid during January 2020 kabs. 5700. d) Labor time tickets for the year: kshs. 4000, Job 86: Job 87: Job 88: Indirect labor Total e) Manufacturing overhead incurred on account kshs. 27,660 1) Depreciation recorded on manufacturing property, plant and equipment: kshs. 6,710 g) Payments on account kshs. 79,330 b) Manufacturing overhead was applied/absorbed at the budgeted rate of 120 percent of direct labor i) Jobs completed during the month: 19,880, 16,560, 11,640 kshs. 52.080 . Job 86: One Transformer at total cost of kshs. 57,130, Job 87: 620 switches at total cost of kshs. 68,876. i) Selling and general administration expenses paid kshs. 21,660 k) Credit sales on account: . - . All of Job 86: for kshs. 91.490 (cost kshs. 57,130) Job 87: 480 switches for kshs. 88,030 (cost kshs. 53,323) 1) Collections on account kshs. 177,880 Required Prepare the Financial Statements of Domestic Electric Company for 2020. Account C - Manufacturing - Trading Account Profit and Loss Account Balance sheet. 3 | Pa Downstate Electric Company manufactures specialized parts used in the generation of power. Initially, the company manufactured the parts for its own use, but it gradually began selling them to other public utilities as well. The trial balance of Downstate Electric's manufacturing operations on January 1, 2020 of the current year follows: M.7). MA. ACCOUNT NAME Cash ✔ Account receivable Raw materials inventory Work in process inventory Finished goods inventory Property plant & Equipment(PPE) Accumulated depreciation DOWNSTATE ELECTRIC COMPANY MANUFACTURING OPERATIONS TRIAL BALANCE JANUARY 1 2020 DEBIT Kshs. 33,000 65,860 18,910 (PPE) Accounts payable Wages payable Contributed capital-Ordinary shares Retained earnings Sales revenue Cost of goods sold Selling general administration expenses Total Petrochemicals Electronic parts Indirect materials Total 43,350 78,550 342,860 Kshs. 582,530 CREDIT JANUARY 1 BALANCES IN THE SUBSIDIARY LEDGERS WERE: Raw materials subsidiary ledger: Steel kshs. 4,730 5,280 7,800 1,100 kshs. 18.910 Kshs. 145,960 88,650 5,700 200,000 142,220 Kshs. 58,258 1| Page Work-in-process subsidiary ledger: kshs 43,350 Finished goods subsidiary ledger: Transformers kshs 35,770 Transmission lines 21,910 Switches 20,870 Total kshs. 78.550 Job 86: YEAR 2020 TRANSACTIONS ARE SUMMARIZED AS FOLLOWS: a) Materials purchased on credit: Steel kshs. 12,660 19,570 28,360 6,130 66,720 Petrochemicals, Electronic parts Indirect materials Total b) Materials used in production (requisitioned) Job 86: Petrochemicals Steel Total . Steel kshs. Job 87: Petrochemicals, Electronic parts Total Steel • Job 88: Petrochemicals Electronic parts Indirect materials Total- kshs. 1,580 3,400 kshs. 4.980 kshs 10,580, 9,870, 4,690 kshs. 25,140 ksh 2,930, 7,680, 29.920. 4,760 kshs. 45,290 c) Manufacturing wages Incurred during 2020 kshs. $2,080 of which kshs. 49,560 was paid. Wages payable at December 31 2019 were paid during January 2020 kabs. 5700. d) Labor time tickets for the year: kshs. 4000, Job 86: Job 87: Job 88: Indirect labor Total e) Manufacturing overhead incurred on account kshs. 27,660 1) Depreciation recorded on manufacturing property, plant and equipment: kshs. 6,710 g) Payments on account kshs. 79,330 b) Manufacturing overhead was applied/absorbed at the budgeted rate of 120 percent of direct labor i) Jobs completed during the month: 19,880, 16,560, 11,640 kshs. 52.080 . Job 86: One Transformer at total cost of kshs. 57,130, Job 87: 620 switches at total cost of kshs. 68,876. i) Selling and general administration expenses paid kshs. 21,660 k) Credit sales on account: . - . All of Job 86: for kshs. 91.490 (cost kshs. 57,130) Job 87: 480 switches for kshs. 88,030 (cost kshs. 53,323) 1) Collections on account kshs. 177,880 Required Prepare the Financial Statements of Domestic Electric Company for 2020. Account C - Manufacturing - Trading Account Profit and Loss Account Balance sheet. 3 | Pa
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