ACCT 202 Lecture 20: Assignment 1-3
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The costs listed in the following related to the factory were incurred during the period. (Hint: Record these items in one entry with one debit to manufacturing overhead and four separate credits):
Building depreciation | $580,000 |
Insurance (prepaid during 2016, now expired) | $220,000 |
Utilities (on account) | $ 80,000 |
Maintenance (paid cash) | $440,000 |
-Manufacturing overhead was applied at a rate of $20 per machine hour, and 90,000 machine hours were utilized during the year. (Hint: No need to calculate the predetermined overhead rate since it is already given to you here.)
-Miscellaneous selling costs totaling $430,000 were paid. These costs were recorded in an account called selling expenses.
-Miscellaneous general and administrative costs totaling $265,000 were paid. These costs were recorded in an account called G&A expenses.
-Goods costing $2,030,000 (per the job cost sheets) were completed and transferred out of work-in-process inventory.
-Goods were sold on account for $3,800,000.
-The goods sold in transaction 12 had a cost of $2,570,000 (per the job cost sheets).
-Payments totaling $3,300,000 from credit customers related to transaction 12 were received
Required:
Prepare T-accounts for raw materials inventory, work-in-process inventory, finished goods inventory, manufacturing overhead, and cost of goods sold. Enter the beginning balances for the inventory accounts. (Manufacturing overhead and cost of goods sold are temporary accounts and thus do not have a beginning balance.)
Prepare a journal entry for each transaction from 1 through 14 in a format like the one in Figure 2.7, and where appropriate, post each entry to the T-accounts set up in requirement a. Note that these entries reflect the flow of costs through the inventory and cost of goods sold accounts for the year, so you are only posting the dollar amounts related to the T-accounts set up in requirement a. Label each entry in the T-accounts by transaction number, include a short description (e.g., direct materials and manufacturing overhead applied), and total each T-account.
Based on the balance in the manufacturing overhead account prepared in requirement b, prepare a journal entry to close the manufacturing overhead account to cost of goods sold.
Prepare an income statement for the year ended December 31, 2016. Remember to adjust cost of goods sold for any underapplied or overapplied overhead from requirement c.
Why is cost of goods sold adjusted upward on the income statement?
I NEED HELP WITH THE JOURNAL ENTRIES.PLEASE GIVE FORMULAS SO I CAN SEE HOW IT IS CALCULATED. THANK YOU!NEED BY 11 PM TONIGHT! | |||||||||
Problem P2-3 Job-Order Costing: InventoryAccounts and Cost of Goods Sold | |||||||||
Smith Die Companymanufactures cutting dies for the shoe industry. Each set of diesis custom designed to a customer's templates. During the first weekof May, six orders were received from customers. They were assignedjob numbers 1005-1010. The following transactions occurred duringthe first week of May. | |||||||||
Smith Die purchased steel onaccount from Eastern City Steel costing | $ 5,500 | ||||||||
The company received and paid for supplies(indirect materials) from Mallard Supply costing | $ 2,400 | ||||||||
Material requisitions indicated that materials wereissued to the factory floor as follows: | |||||||||
Job Number: | Direct Materials: | Indirect Materials: | |||||||
1005 | $ 650 | ||||||||
1006 | $ 850 | ||||||||
1007 | $ 1,550 | ||||||||
1008 | $ 650 | ||||||||
1009 | $ 450 | ||||||||
1010 | $ 350 | ||||||||
Totals | $ 4,500 | $1,000 | |||||||
The labor time ticket summary reflected thefollowing costs for the week: | |||||||||
Job Number: | Direct Labor: | Indirect Labor: | |||||||
1005 | $ 1,600 | ||||||||
1006 | $ 2,000 | ||||||||
1007 | $ 3,300 | ||||||||
1008 | $ 1,400 | ||||||||
1009 | $ 900 | ||||||||
1010 | $ 700 | ||||||||
Totals | $ 9,900 | $6,500 | |||||||
Overhead was applied to alljobs in process at 180% of direct labor cost. Jobs 1005, 1006, 1007and 1008 were completed and transferred to finished goods. Jobs1009 and 1010 were still in process at the end of the week. Jobs1005, 1006, 1007, and 1008 were shipped to customers and billed at150% of total job cost. | |||||||||
Required: | |||||||||
Part a. Calculate thetotal cost of each job. | |||||||||
Cost of Jobs: | |||||||||
1005 | 1006 | 1007 | 1008 | 1009 | 1010 | ||||
Material | $650 | $850 | $1,550 | $650 | $450 | $350 | |||
Labor | 1,600 | 2,000 | 3,300 | 1,400 | 900 | 700 | |||
Overhead | 2,880 | 3,600 | 5,940 | 2,520 | 1,620 | 1,260 | |||
Total | $5,130 | $6,450 | $10,790 | $4,570 | $2,970 | $2,310 | |||
Part b. Prepare journalentries to record the above information. I NEED HELP WITH THEJOURNAL ENTRIES. PLEASE GIVE FORMULAS SO I CAN SEE HOW IT ISCALCULATED. THANK YOU! NEED BY 11 PM TONIGHT! | |||||||||
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Accounts Receivable | |||||||||
Cost of Goods Sold | |||||||||
Sales | |||||||||
Finished Goods | |||||||||
To record the sale of finished goods | |||||||||