ACCT 226 Lecture Notes - Lecture 6: Finished Good

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rubydonkey41

29 Jan 2017

School

USC, SC, Carolina, South Carolina

Department

Accounting

Course

ACCT 226

Professor

Brumbaugh, Debbie Huguley

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Document Summary

Raw materials - any materials that go into the final product. Work in process - units of production that are only partially complete. Finished goods - completed units of product that have not been sold to customers. Cost of goods manufactured - manufacturing costs associated with the goods that were finished during the period. Example: applying manufacturing overhead (multiply level of activity (usually hours) by the pohr) Accounting for nonmanufacturing costs - expensed in the period incurred. Ex) salary expense of employees in a marketing, selling, or administrative capacity, advertising expense. Contains three types of costs: direct materials, direct labor, and moh. Calculates the cost of raw material and direct labor used in production and the amount of manufacturing overhead applied to production, as well as manufacturing costs associated with goods that were finished during the period. Underapplied overhead - estimate of moh using pohr is less than actual moh.

Related Questions

Can anyone please help me do the ledger accounts for accounts receivable, accounts payable, sales revenue, raw materials,salaries and wages payable,cost of goods sold, work in process, salaries and wages expense, finished good, advertising expense, manufacturing overhead, depreciation expense, accumulated depreciation. General Journal
Date	Description	Debit	Credit
Dec 1 ,17	Raw material	$ 10,000
	Accounts payable		$ 10,000

5-Dec	Work in progress	$ 1,600
	raw material		$ 1,600

10-Dec	Work in progress	$ 150
	salaries and wages payable		$ 150

	Manufacturing overhead	$ 2,000
	salaries and wages payable		$ 2,000

	Salaries and wages expense	$ 3,000
	accounts payable		$ 3,000

15-Dec	Work in progress	$ 1,900
	raw material		$ 1,900

16-Dec	manufacturing overhead	$ 500
	account payable		$ 500

17-Dec	Advertising expense	$ 1,200
	accounts payable		$ 1,200


20-Dec	Manufacturing overhead	$ 150
	accuulated depreciation		$ 150

	Depreciation expense	$ 600
	accounts payable		$ 600

22-Dec	Work in progress	$ 1,800
	manufacturing overhead		$ 1,800

26-Dec	finished goods	$ 3,520
	work in progress		$ 3,520

28-Dec	accounts receivable	$ 15,000
	sales revenue		$ 15,000

	cost of goods sold	$ 3,520
	finished goods		$ 3,520

31-Dec	work in progress	$ 60
	salaries and wages payable		$ 60

	work in progress	$ 900
	manufacturing overhead		$ 900

	cost of goods sold	$ 50
	manufacturing overhead		$ 50

oliveraven401

Zachary Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). AI manufactures a wireless modem that enables users to access the Internet through cell phones. The following trial balance was drawn from the accounts of the subsidiary:


Cash	$	184,600
Raw materials inventory		3,680
Work in process inventory		5,530
Finished goods inventory		6,450
Common stock			$	119,060
Retained earnings				81,200
Totals	$	200,260	$	200,260

The subsidiary completed the following transactions during 2017:

1. Paid $55,380 cash for direct raw materials.

2. Transferred $46,160 of direct raw materials to work in process.

3. Paid production employees $73,860 cash.

4. Applied $48,910 of manufacturing overhead costs to work in process.

5. Completed work on products that cost $150,410.

6. Sold products that cost $131,950 for $167,950 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.

7. Paid $18,450 cash for selling and administrative expenses.

8. Actual overhead costs paid in cash amounted to $50,710.

9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).

10. Made a $4,580 cash distribution to the owners

REQUIRED

A. Prepare a schedule of cost of goods manufactured and sold.

ANYWHERE, INC.
Schedule of Cost of Goods Manufactured and Sold
For Year Ended December, 31 2017
Beginning raw materials inventory
Purchases
Raw materials available for use	0
Ending raw materials inventory
Direct raw materials used	0
Direct labor
Manufacturing overhead
Total manufacturing costs	0
Beginning work in process inventory
Total work in process inventory	0
Ending work in process inventory
Cost of goods manufactured	0
Beginning finished goods inventory
Cost of goods available for sale	0
Ending finished goods inventory
Cost of goods sold	$0

coffeegoose683

I need to Prepare entries for a job order, cost system, and cost of goods manufactured schedule, but my numbers aren't matching up. Please answer both parts of the question.

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.

P15-3A Prepare entries for a job order cost system and cost of goods manufactured schedule
Case Inc. is a construction company specializing in custom patios. The patios are constructed of
concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017,
the general ledger for Case Inc. contains the following data.

Raw Materials Inventory			$4,200		Manufacturing Overhead Applied		$32,640
Work in Process Inventory			$5,540		Manufacturing Overhead Incurred		$31,650

Subsidiary data for Work in Process Inventory on June 1 are as follows.

	Job Cost Sheets
			Customer Job
	Cost Element		Rodgers		Stevens	Linton
	Direct materials		$600		$800	$900
	Direct labor		320		540	580
	Manufacturing overhead		400		675	725
			$1,320		$2,015	$2,205

During June, raw materials purchased on account were $4,900, and all wages were paid. Additional
overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred
on account.
A summary of materials requisition slips and time tickets for June show the following.

	Customer Job		Materials Requisition slips		Time tickets
	Rodgers		$ 800		$850
	Koss		2,000		800
	Stevens		500		360
	Linton		1,300		1,200
	Rodgers		300		390
			4,900		3,600
	General use		1,500		1,200
			$ 6,400		$4,800

Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for
customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900.
Each customer paid in full.

Instructions
(a)	Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred,
	and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to
	production; and (3) completion of jobs and sale of goods.
(b)	Post the entries to Work in Process Inventory.
(c )	Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d)	Prepare a cost of goods manufactured schedule for June.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .



(a)(1)	Journalize the June transactions for purchase of raw materials, factory labor costs incurred,
	and manufacturing overhead costs incurred

	Raw Malerials Inventory
		Accounts Payable


	Factory Labor
		Cash


	Manufacturing Overhead
		Accumulated Depreciation- Equipment
		Accounts Payable


(a)(2)	Journalize the June transactions for assignment of direct materials, labor, and overhead to production

	Work in Pricess Inventory
	Manufacturing Overhead
		Raw Malerials Inventory


	Work in Pricess Inventory
	Manufacturing Overhead
		Factory Labor


	Work in Pricess Inventory
		Manufacturing Overhead


(a)(3)	Journalize the June transactions for completion of jobs and sale of goods.

	Finished Goods Inventory
		Work in Process Inventory


	Cash
		Sales


	Cost of Goods Sold
		Finished Goods Inventory


(b)	Post the entries to Work in Process Inventory.

	Work in Process Inventory
	6/1	Balance		June	Completed work
		Direct Materials
		Direct labor
		Overhead applied

	6/30	Balance


(c )	Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.

	6/30 balance in Work in Process Inventory
	Unfinished Job (Koss)
	Direct materials
	Direct labor
	Manufacturing overhead



(d)	Prepare a cost of goods manufactured schedule for June.

	CASE INC.
	Cost of Goods Manufactured Schedule
	For the Month Ended June 30, 2017

	Work in process, June 1
	Direct materials used
	Direct labor
	Manufacturing overhead applied
	Total manufacturing costs
	Total cost of work in process
	Less: Work in process, June 30
	Cost of goods manufactured



After you have completed P15-3A, consider the following additional question.
1.	Assume that indirect labor and raw materials purchases changed to $1,400 and $6,800 respectively.
	Also assume that overhead is applied at the rate of $1.50 per dollar of direct labor. The three
	completed jobs were sold for $22,000 cash. Revise the journal entries to reflect these changes.

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ACCT 226 Lecture Notes - Lecture 6: Finished Good

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