**Job Order Costing Problem:** The following were the inventory balances on 1/1/17: | Raw Materials | Work In Process | Finished Goods | | ------------- | --------------- | -------------- | | $65,000 | $60,000 | $84,000 | The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: - Direct materials $224,000 - Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: - Assembly-line workers: $240,000 - Supervisors: $45,000 - Maintenance workers: $27,000 - Security: $25,000 d. The following were other factory related costs: - Depreciation on equipment: $42,000 - Building rent: $30,000 - Insurance: $18,000 - Utilities: $66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. g. Goods costing $802,000 were sold for $1,463,000. All sales were on credit. **Required:** 1. Prepare journal entries for all items a through g above. Assume items all sales and purchases were on account. 2. Prepare T-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
**Job Order Costing Problem:** The following were the inventory balances on 1/1/17: | Raw Materials | Work In Process | Finished Goods | | ------------- | --------------- | -------------- | | $65,000 | $60,000 | $84,000 | The following manufacturing activity occurred during the month of January: a. Purchased raw materials inventory of $210,000 on account. b. Kate requisitioned materials to complete various jobs: - Direct materials $224,000 - Indirect materials $39,000 c. Time cards and payroll records indicate the following factory wages and salaries incurred during the month: - Assembly-line workers: $240,000 - Supervisors: $45,000 - Maintenance workers: $27,000 - Security: $25,000 d. The following were other factory related costs: - Depreciation on equipment: $42,000 - Building rent: $30,000 - Insurance: $18,000 - Utilities: $66,000 e. Manufacturing overhead was applied using a rate of 125% of direct labor costs. f. Goods costing $775,000 were completed during the month. g. Goods costing $802,000 were sold for $1,463,000. All sales were on credit. **Required:** 1. Prepare journal entries for all items a through g above. Assume items all sales and purchases were on account. 2. Prepare T-accounts for Raw materials, WIP, Finished Goods, Cost of Goods Sold and Manufacturing Overhead. Provide beginning balances and January activity in items a through g. 3. Prepare a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hello, can you please complete the steps below for the following question on the photo. Thank you
a. Record all JEs: "a" through "g"
b. Prepare AJE for MO
c. Provide Balances in RM, WIP, FG, MO, and CGS accounts.
d. Prepare a Schedule of Cost of Goods Manufactured
e. Prepare Income Statement through Gross Profit/Margin
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education