Coronado Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Coronado uses a job order costing system. On January 1, the T-accounts for some of Coronado’s primary balance sheet accounts were as follows: Raw Materials Inventory Work in Process Inventory 1/1 59,400 1/1 25,500 Finished Goods Inventory Cash 1/1 38,600 1/1 37,200 Accounts Receivable Accounts Payable 1/1 47,300 1/1 41,900 During the year, the following events occurred: 1. Coronado purchased raw materials costing $118,000 on account. 2. Coronado used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Coronado maintains a single Raw Materials Inventory account.) 3. Coronado used 31,900 hours of direct labor. The company’s average direct labor rate was $11 per hour (credit Wages Payable). 4. The company’s indirect labor cost was $168,000 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $97,400. 6. Coronado applied $316,800 in manufacturing overhead. 7. The company completed production of goods costing $795,400. 8. The company’s Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead. 9. Sales revenue was $1,040,000 (all sales were made on account). 10. Coronado collected $803,200 from customers. 11. The company paid accounts payable of $201,300. 12. At year-end, all wages earned during the year had been paid. Record the transactions above in the appropriate T-accounts and calculate ending balances. (Post entries in order presented in the problem.)

Coronado Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Coronado uses a job order costing system. On January 1, the T-accounts for some of Coronado’s primary balance sheet accounts were as follows: Raw Materials Inventory Work in Process Inventory 1/1 59,400 1/1 25,500 Finished Goods Inventory Cash 1/1 38,600 1/1 37,200 Accounts Receivable Accounts Payable 1/1 47,300 1/1 41,900 During the year, the following events occurred: 1. Coronado purchased raw materials costing $118,000 on account. 2. Coronado used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Coronado maintains a single Raw Materials Inventory account.) 3. Coronado used 31,900 hours of direct labor. The company’s average direct labor rate was $11 per hour (credit Wages Payable). 4. The company’s indirect labor cost was $168,000 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $97,400. 6. Coronado applied $316,800 in manufacturing overhead. 7. The company completed production of goods costing $795,400. 8. The company’s Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead. 9. Sales revenue was $1,040,000 (all sales were made on account). 10. Coronado collected $803,200 from customers. 11. The company paid accounts payable of $201,300. 12. At year-end, all wages earned during the year had been paid. Record the transactions above in the appropriate T-accounts and calculate ending balances. (Post entries in order presented in the problem.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Raw Materials Inventory	Work in Process Inventory
1/1	59,400	1/1	25,500

Finished Goods Inventory	Cash
1/1	38,600	1/1	37,200

Accounts Receivable	Accounts Payable
1/1	47,300	1/1	41,900

During the year, the following events occurred:

1.	Coronado purchased raw materials costing $118,000 on account.
2.	Coronado used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Coronado maintains a single Raw Materials Inventory account.)
3.	Coronado used 31,900 hours of direct labor. The company’s average direct labor rate was $11 per hour (credit Wages Payable).
4.	The company’s indirect labor cost was $168,000 (credit Wages Payable).
5.	Other manufacturing overhead costs the company incurred on account totaled $97,400.
6.	Coronado applied $316,800 in manufacturing overhead.
7.	The company completed production of goods costing $795,400.
8.	The company’s Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead.
9.	Sales revenue was $1,040,000 (all sales were made on account).
10.	Coronado collected $803,200 from customers.
11.	The company paid accounts payable of $201,300.
12.	At year-end, all wages earned during the year had been paid.