Skip to Main content

Question $1$

Question $2$

Question content area top left

Part $1$

Stella Stars produces stars for elementary teachers to reward their students. Stella $$Stars$\text{'}$ trial balance on June $1$ follows:

LOADING...$($Click the icon to view the trial$$ balance.$)$

June $1$ balances in the subsidiary ledgers were as$$ follows:

LOADING...$($Click the icon to view the$$ balances.$)$ Data table

$\backslash$table$[[$June $1,2024],[,$Balance$],[$Account Title,Debit,Credit$],[$Cash$,$$$,21,000,,],[$Accounts Receivable,,$165,000,,],[$Inventories:$],[$Raw Materials,,$5,700,,],[$Work$-$in$-$Process,,$40,750,,],[$Finished Goods,,$22,800,,],[$Property$,$ Plant, and Equipment,,$240,000,,],[$Accumulated Depreciation,,,$$,72,000],[$Accounts Payable,,,,$131,000],[$Wages Payable,,,,$3,300],[$Common Stock,,,,$138,000],[$Retained Earnings,,,,$150,950],[$Sales Revenue,,,,$0],[$Cost of Goods Sold,,$0,,],[$Manufacturing Overhead,,$0,,],[$Selling and Administrative Expenses,,$0,,],[$Total$,$$$,495,250,$$$,495,250]]$ More info

Raw Materials Inventory subsidiary ledger: Paper, $$4,300$; indirect materials, $$1,400$

Work$-$in$-$Process Inventory subsidiary ledger: Job $120,$ $$40,750$; Job $121,$ $$0$

Finished Goods Inventory subsidiary ledger: Large Stars, $$8,900$; Small Stars, $$13,900$

a$.$ Collections on account, $$150,000.$

b$.$ Selling and administrative expenses incurred and paid, $$30,000.$

c$.$ Payments on account, $$41,000.$

d$.$ Materials purchased on account: Paper, $$23,300$; indirect materials, $$4,900.$

e$.$ Materials requisitioned and used in production:

f$.$ Wages incurred during June, $$41,000.$ Labor time records for the month: Job $120,$ $$3,800$; Job $121,$

$$16,600$; indirect labor, $$20,600.$

g$.$ Wages paid in June include the balance in the Wages Payable at May $31$ plus $$38,000$ of wages

incurred during June.

h$.$ Depreciation on plant and equipment, $$3,000.$

i$.$ Manufacturing overhead allocated at the predetermined overhead allocation rate of $50\%$ of direct

labor costs.

j$.$ Jobs completed during the month: Job $120$ with $600,000$ Large Stars at a total cost of $$47,250.$

k$.$ Sales on account: all of Job $120$ for $$130,000.$ along with each account's balance as given. Post the journal entries to the T$-$accounts using the transaction letters as a reference.

affected by the transaction. For accounts with a zero balance, enter a $"0"$ along with a "Bal." reference on the normal side of the T$-$account.$)$

Review the journal entries you prepared in Requirement $1.$

Work$-$in$-$Process Inventory

Accumulated Depreciation

Common Stock

Finished Goods Inventory

Accounts Payable

Retained Earnings

Raw Materials Inventory

Property, Plant, and Equipment

Sales Revenue

one posting.$)$ Post the transactions to the Raw Materials Inventory subsidiary ledger accounts. Key each transaction by transaction letter, and calculate the ending balance, "Bal." of each account.

$($Combine the entries for transaction $($e$)$ into one posting.$)$

Post the transactions to the Work$-$in$-$Process Inventory subsidiary ledger accounts. Key each transaction by transaction letter, and calculate the ending balance "Bal." of each account.

$($For accounts with a zero balance, enter a $"0"$ along with a "Bal." reference on the normal side of the T$-$account.$)$

Post the transactions to the Finished Goods Inventory subsidiary ledger accounts. Key each transaction by transaction letter, and calculate the ending balance "Bal." of each account.Requirement $3.$ Prepare a trial balance at June $30,2024.($Leave both the Debit and Credit column cells blank for accounts with a zero balance at June$\_30\_)$

Review the general ledger accounts you prepared in Requirement $2.$Requirement $3.$ Prepare a trial balance at June $30,2024.($Leave both the Debit and Credit column cells blank for acoounts with a zero balance at June$\_30.)$

Review the general ledger accounts you prepared in Requirement $2.$

Requirement $4.$ Use the Work$-$in$-$Process Inventory T$-$account to prepare a schedule of cost of goods manufactured for the month of June.

Review the Work$-$In$-$Process Inventory general ledger account you prepared in Requirement $2.$

Requirement $5.$ Prepare an income statement for the month of June.

Review the trial balance you prepared in Requirement $3.$

Review the journal entry for underallocated manufacturing overhead you prepared in Requirement $1.$