If You Company had the following account balances as of August 1, 2018: Raw Material (direct & indirect) inventory $20,300 Work in Process Inventory 7,000 Finished Goods Inventory 18,000 Purchased $164,000 of raw material on account. Issued $180,000 of raw material of which $134,000 was direct to the product. Accrued factory payroll of $88,000; $62,000 was for direct labor and the rest was for supervisors' salaries. Accrued utility cost of $7,000; of these costs $1600 were fixed. Accrued property taxes on the factory in the amount of $2,000. Had prepaid insurance of $1,600 on factory equipment that expired in August. Had straight line depreciation on factory equipment of $40,000. Applied actual overhead to Work Process Inventory. Transferred goods costing $320,000 to Finished Goods Inventory. Had total sales on account of $70,000. Had cost of goods sold of $330,000. Had selling and administrative costs of $280,000 (credit Various accounts). Had ending work in progress inventory of $5600. Required: a.Journalize the transactions for August. b.Post transactions to T-accounts for Raw material Inventory, Work in process Inventory, Finished Goods Inventory, and Cost Of goods Solds. C.Prepare a schedule of cost of goods manufactured for August using actual costing. d.Prepare an income statement, including a detailed schedule of cost of goods sold.
If You Company had the following account balances as of August 1, 2018: Raw Material (direct & indirect) inventory $20,300 Work in Process Inventory 7,000 Finished Goods Inventory 18,000 Purchased $164,000 of raw material on account. Issued $180,000 of raw material of which $134,000 was direct to the product. Accrued factory payroll of $88,000; $62,000 was for direct labor and the rest was for supervisors' salaries. Accrued utility cost of $7,000; of these costs $1600 were fixed. Accrued property taxes on the factory in the amount of $2,000. Had prepaid insurance of $1,600 on factory equipment that expired in August. Had straight line depreciation on factory equipment of $40,000. Applied actual overhead to Work Process Inventory. Transferred goods costing $320,000 to Finished Goods Inventory. Had total sales on account of $70,000. Had cost of goods sold of $330,000. Had selling and administrative costs of $280,000 (credit Various accounts). Had ending work in progress inventory of $5600. Required: a.Journalize the transactions for August. b.Post transactions to T-accounts for Raw material Inventory, Work in process Inventory, Finished Goods Inventory, and Cost Of goods Solds. C.Prepare a schedule of cost of goods manufactured for August using actual costing. d.Prepare an income statement, including a detailed schedule of cost of goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If You Company had the following account
balances as of August 1, 2018:
Raw Material (direct & indirect) inventory
$20,300
Work in Process Inventory
7,000
Finished Goods Inventory
18,000
Purchased $164,000 of raw material on account.
Issued $180,000 of raw material of which $134,000 was direct
to the product.
Accrued factory payroll of $88,000; $62,000 was for direct labor and the rest was for
supervisors' salaries.
Accrued utility cost of $7,000; of these costs $1600 were fixed.
Accrued property taxes on the factory in the amount of $2,000.
Had prepaid insurance of $1,600 on factory equipment that expired in August.
Had straight line depreciation on factory equipment of $40,000.
Applied actual overhead to Work Process Inventory.
Transferred goods costing $320,000 to Finished Goods Inventory.
Had total sales on account of $70,000.
Had cost of goods sold of $330,000.
Had selling and administrative costs of $280,000 (credit Various accounts).
Had ending work in progress inventory of $5600.
Required:
a.Journalize the transactions for August.
b.Post transactions to T-accounts for Raw material Inventory, Work in process Inventory, Finished Goods
Inventory, and Cost Of goods Solds.
C.Prepare a schedule of cost of goods manufactured for August using actual costing.
d.Prepare an income statement, including a detailed schedule of cost of goods sold.
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