Dusty's Treasures had the following account balances as of January 1, 2021 Direct Materials Inventory $28,200...

  

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Dusty's Treasures had the following account balances as of January 1, 2021 Direct Materials Inventory $28,200 Supplies Inventory 3,000 96,000 19,000 6,000 Work-In-Process Inventory Finished Goods Inventory Prepaid Insurance During January, the company incurred the following costs: 1. Purchased $119,000 of direct materials and $60,000 of supplies on account. 2. Issued $125,000 of direct materials and $54,000 of supplies to production. 3. Accrued factory payroll of $88,000; $62,000 was for direct manufacturing labor and the rest was supervisor's salaries. 4. Accrued plant utility costs of $7,000; $1,600 of this was fixed. 5. Accrued property taxes on the factory for $2,200. 6. Had prepaid insurance of $1,600 on factory equipment expire in January. 7. Had straight-line depreciation on factory equipment of $40,000. 8. Applied actual MOH to Work-In-Process Inventory. 9. Transferred goods costing $410,000 to Finished Goods Inventory. 10. Had total sales on account of $720,000. 11. Had cost of goods sold of $420,000. 12. Had selling and administrative costs of $280,000; $175,000 was accrued wages and the rest charged on account. (Check figure: ending Work-In-Process Inventory should equal $9,800) Required: 1. Journalize the transactions for January, using the item number as the date and the chart of accounts provided. 2. Post necessary transactions to the ledger account (use T-accounts) for Direct Materials Inventory, WIP Inventory, FG Inventory, and COGS. (You may post others if desired, but these four are for points). 3. Prepare a Schedule of Cost of Goods Manufactured for January. (See pg 42) 4. Prepare and Income Statement for January, using the detailed Schedule of Cost of Goods Sold. (See pg. 42) Dusty's Treasures had the following account balances as of January 1, 2021 Direct Materials Inventory $28,200 Supplies Inventory 3,000 96,000 19,000 6,000 Work-In-Process Inventory Finished Goods Inventory Prepaid Insurance During January, the company incurred the following costs: 1. Purchased $119,000 of direct materials and $60,000 of supplies on account. 2. Issued $125,000 of direct materials and $54,000 of supplies to production. 3. Accrued factory payroll of $88,000; $62,000 was for direct manufacturing labor and the rest was supervisor's salaries. 4. Accrued plant utility costs of $7,000; $1,600 of this was fixed. 5. Accrued property taxes on the factory for $2,200. 6. Had prepaid insurance of $1,600 on factory equipment expire in January. 7. Had straight-line depreciation on factory equipment of $40,000. 8. Applied actual MOH to Work-In-Process Inventory. 9. Transferred goods costing $410,000 to Finished Goods Inventory. 10. Had total sales on account of $720,000. 11. Had cost of goods sold of $420,000. 12. Had selling and administrative costs of $280,000; $175,000 was accrued wages and the rest charged on account. (Check figure: ending Work-In-Process Inventory should equal $9,800) Required: 1. Journalize the transactions for January, using the item number as the date and the chart of accounts provided. 2. Post necessary transactions to the ledger account (use T-accounts) for Direct Materials Inventory, WIP Inventory, FG Inventory, and COGS. (You may post others if desired, but these four are for points). 3. Prepare a Schedule of Cost of Goods Manufactured for January. (See pg 42) 4. Prepare and Income Statement for January, using the detailed Schedule of Cost of Goods Sold. (See pg. 42)

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1 Journal Entry Date Account title Explanation 01Jan Direct material inventory Supplies Inventory Ac... View the full answer