Question 6 Pacific Pool Company (PPC) builds custom swimming pools for homeowners in California, Arizona, and...

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Question 6 Pacific Pool Company (PPC) builds custom swimming pools for homeowners in California, Arizona, and Nevada. PPC uses material requisitions forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. Manufacturing overhead is applied to jobs at a rate of S100 per direct labor hour. During the first month of operations, company recorded the following transactions: a. Purchased $200,000 in raw materials b. Issued the following materials to production: $130,000 was directly traccable to specific jobs • $20,000 was not directly traccable to specific jobs c. Recorded the following labor costs (paid in cash): Direct labor $50,000 • Construction supervision 30,000 d. Recorded the following actual manufacturing overhead costs: Construction insurance S 5,000 Construction equipment depreciation 25,000 Pool permits and inspections 5,000 c. Recorded the following nonmanufacturing costs: • Office equipment depreciation S 3,000 • Rent and insurance on owner's company car 2,000 • Advertising costs 10,000 f. Applied manufacturing overhead to jobs in process based on 900 actual direct labor hours. g. Completed 15 pools at a total cost of S195,000 h. Finalized the sale of 13 pools that cost S176,000. The other 2 pools are completed and a waiting inspection by the customer before the sale finalized. i. Recorded sales revenue of $325,000 on the 13 pools that were sold. j. Closed the Manufacturing Overhead account balance to Cost of Goods Sold REQUIRED: Show how all of these costs would flow through the T- accounts a. Raw material inventory Work In Process Inventory • Finished Goods Inventory • Manufacturing Overhcad • Cost of Goods Sold (COGS) • Sales Revenue • Non manufacturing expenses b. Assuming there were no beginning balances in any of the accounts, caleulate the ending balance in the following accounts • Work in process inventory • Finished goods inventory • Manufacturing overhead (over/under applied) • Costs of goods sold (after the overhead adjustment) c. Prepare a cost of goods manufactured report for PPC d. Prepare an income statement showing the adjustment to cost of goods sold. Question 6 Pacific Pool Company (PPC) builds custom swimming pools for homeowners in California, Arizona, and Nevada. PPC uses material requisitions forms and direct labor time tickets to trace direct materials and direct labor costs to specific jobs. Manufacturing overhead is applied to jobs at a rate of S100 per direct labor hour. During the first month of operations, company recorded the following transactions: a. Purchased $200,000 in raw materials b. Issued the following materials to production: $130,000 was directly traccable to specific jobs • $20,000 was not directly traccable to specific jobs c. Recorded the following labor costs (paid in cash): Direct labor $50,000 • Construction supervision 30,000 d. Recorded the following actual manufacturing overhead costs: Construction insurance S 5,000 Construction equipment depreciation 25,000 Pool permits and inspections 5,000 c. Recorded the following nonmanufacturing costs: • Office equipment depreciation S 3,000 • Rent and insurance on owner's company car 2,000 • Advertising costs 10,000 f. Applied manufacturing overhead to jobs in process based on 900 actual direct labor hours. g. Completed 15 pools at a total cost of S195,000 h. Finalized the sale of 13 pools that cost S176,000. The other 2 pools are completed and a waiting inspection by the customer before the sale finalized. i. Recorded sales revenue of $325,000 on the 13 pools that were sold. j. Closed the Manufacturing Overhead account balance to Cost of Goods Sold REQUIRED: Show how all of these costs would flow through the T- accounts a. Raw material inventory Work In Process Inventory • Finished Goods Inventory • Manufacturing Overhcad • Cost of Goods Sold (COGS) • Sales Revenue • Non manufacturing expenses b. Assuming there were no beginning balances in any of the accounts, caleulate the ending balance in the following accounts • Work in process inventory • Finished goods inventory • Manufacturing overhead (over/under applied) • Costs of goods sold (after the overhead adjustment) c. Prepare a cost of goods manufactured report for PPC d. Prepare an income statement showing the adjustment to cost of goods sold.

Answer rating: 100% (QA)

a Taccounts Raw Material Inventory Work in Process Inventory Debit Credit Deb... View the full answer