Beginning Balance 12/1 $ 4,200 Ending Balance 12/30 $ 17,000 Materials Control Work-in-Process Control 13,400 18,000 Manufacturing Department Overhead Control 188,000 Finished Goods Control 8,800 38,800 Additional information follows: a. Direct materials purchased during December were $132,600. b. Cost of goods manufactured for December was $468,000. c. No direct materials were returned to suppliers. d. No units were started or completed on December 31 and no direct materials were requisitioned on December 31. e. The manufacturing labor costs for the December 31 working day: direct manufacturing labor, $8,600, and indirect manufacturing labor, $2,800. f. Manufacturing overhead has been allocated at 110% of direct manufacturing labor costs through December 31. 1. Prepare journal entries for the December 31 payroll. 2. Use T-accounts to compute the following: a. The total amount of materials requisitioned into work in process during December b. The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) c. The total amount of manufacturing overhead recorded in work in process during December d. Ending balance in work in process, December 31 e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead Required 3. Prepare closing journal entries related to manufacturing overhead. Assume that all under- or over- allocated manufacturing overhead is closed directly to Cost of Goods Sold.
Beginning Balance 12/1 $ 4,200 Ending Balance 12/30 $ 17,000 Materials Control Work-in-Process Control 13,400 18,000 Manufacturing Department Overhead Control 188,000 Finished Goods Control 8,800 38,800 Additional information follows: a. Direct materials purchased during December were $132,600. b. Cost of goods manufactured for December was $468,000. c. No direct materials were returned to suppliers. d. No units were started or completed on December 31 and no direct materials were requisitioned on December 31. e. The manufacturing labor costs for the December 31 working day: direct manufacturing labor, $8,600, and indirect manufacturing labor, $2,800. f. Manufacturing overhead has been allocated at 110% of direct manufacturing labor costs through December 31. 1. Prepare journal entries for the December 31 payroll. 2. Use T-accounts to compute the following: a. The total amount of materials requisitioned into work in process during December b. The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) c. The total amount of manufacturing overhead recorded in work in process during December d. Ending balance in work in process, December 31 e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead Required 3. Prepare closing journal entries related to manufacturing overhead. Assume that all under- or over- allocated manufacturing overhead is closed directly to Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Overview of general ledger relationships. Estevez Company uses normal costing in its
Transcribed Image Text:Beginning Balance 12/1
$ 4,200
Ending Balance 12/30
$ 17,000
Materials Control
Work-in-Process Control
13,400
18,000
Manufacturing Department Overhead Control
188,000
Finished Goods Control
8,800
38,800
Additional information follows:
a. Direct materials purchased during December were $132,600.
b. Cost of goods manufactured for December was $468,000.
c. No direct materials were returned to suppliers.
d. No units were started or completed on December 31 and no direct materials were requisitioned on
December 31.
e. The manufacturing labor costs for the December 31 working day: direct manufacturing labor, $8,600,
and indirect manufacturing labor, $2,800.
f. Manufacturing overhead has been allocated at 110% of direct manufacturing labor costs through
December 31.
1. Prepare journal entries for the December 31 payroll.
2. Use T-accounts to compute the following:
a. The total amount of materials requisitioned into work in process during December
b. The total amount of direct manufacturing labor recorded in work in process during December (Hint:
You have to solve requirements 2b and 2c simultaneously)
c. The total amount of manufacturing overhead recorded in work in process during December
d. Ending balance in work in process, December 31
e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing
overhead
Required
3. Prepare closing journal entries related to manufacturing overhead. Assume that all under- or over-
allocated manufacturing overhead is closed directly to Cost of Goods Sold.
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