II Froblems Problem 1 (Flow of an accounting for the manufacturing company) The following events took place at the Barton Manufacturing Corporation for the current year: 1. Purchased P80,000 in direct materials. 2 Incurred labor costs as followS a Direct labor, P42,000. b. Supervisory labor, P11,500 (part of manufacturing overhead). 3. Purchased manufacturing equipment for P67,200. 4. Other manufacturing overhead was P80,500, excluding supervisory labor. 5. Transferred 70 percent of the materials purchased to work in process. 6. Completed work on 60 percent of the goods in process. Costs are assigned equally across all work in process. 7. Sold 90 percent of the completed goods. There were no beginning balances in the inventory accounts. All costs incurred were debited to the appropriate account and credited to accounts payable. Required: 1. Prepare jourmal entries to reflect these events. 2. Prepare T-accounts to show these events. 3. Prepare a cost of goods sold statement from the data.

II Froblems Problem 1 (Flow of an accounting for the manufacturing company) The following events took place at the Barton Manufacturing Corporation for the current year: 1. Purchased P80,000 in direct materials. 2 Incurred labor costs as followS a Direct labor, P42,000. b. Supervisory labor, P11,500 (part of manufacturing overhead). 3. Purchased manufacturing equipment for P67,200. 4. Other manufacturing overhead was P80,500, excluding supervisory labor. 5. Transferred 70 percent of the materials purchased to work in process. 6. Completed work on 60 percent of the goods in process. Costs are assigned equally across all work in process. 7. Sold 90 percent of the completed goods. There were no beginning balances in the inventory accounts. All costs incurred were debited to the appropriate account and credited to accounts payable. Required: 1. Prepare jourmal entries to reflect these events. 2. Prepare T-accounts to show these events. 3. Prepare a cost of goods sold statement from the data.

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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Claire Corporation's trial balance includes the following expenses: Raw materials used in production Raw materials purchased General manager salary Sales manager salary Direct labor incurred General liability insurance premium Factory rent Office lease Factory utilities Depreciation on factory equipment Assuming that this list represents all expenses for the year, what amount should Claire report as a period (non-product) expense? Select one: $5,500 6,500 50,000 30,000 130,000 a. $101,000 b. $107,500 c. $83,000 d. $74,000 3,000 24,000 18,000 12,000 14,000
The Darwin Company reports the following information that occurred during the current period: Sales commissions expense $15,600 Administrative office supplies 7,300 Depreciation on factory equipment 4,700 Indirect factory labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales 76,500 Administrative Office salaries expense 8,900 Indirect materials used 1,200 Manufacturing Overhead applied 17,200 Using the information provided above for Darwin Company, calculate the total costs that will be expensed when incurred on the income statement for the period:
Crane Corporation incurred the following transactions. 1. Purchased raw materials on account $58,430. 2. Raw Materials of $45,360 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,660 was classified as indirect materials. 3. Factory labor costs incurred were $75,520. 4. Time tickets indicated that $68,040 was direct labor and $7,480 was indirect labor. 5. Manufacturing overhead costs incurred on account were $101,430. 6. Depreciation on the company’s office building was $10,160. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $110,880 were completed and transferred to finished goods. 9. Finished goods costing $94,500 to manufacture were sold on account for $129,780. Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No.…
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The following data summarize the operations during the year. A. Purchase of raw materials on account. $3,000 B. Raw materials used by Job 1. $550 C. Raw materials used as indirect materials. $50 D. Direct labor for Job 1. $300 E. Indirect labor incurred. $60 F. Factory utilities incurred on account. $650 G. Adjusting entry for factory depreciation. $250 H. Manufacturing overhead applied as % of direct labor. 200% I. Job 1 is transferred to finished goods. J. Job 1 is sold. $2,900 K. Manufacturing overhead is overapplied. $80 Prepare a journal entry for each transaction. If an amount box does not require an entry, leave it blank. A. Raw Materials Inventory Raw Materials Inventory Accounts Payable Accounts Payable B. Work in Process Inventory Work in Process Inventory Raw Materials Inventory Raw Materials Inventory C. Manufacturing Overhead Manufacturing Overhead Raw Materials Inventory…
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The following information is available: -Estimated Factory Overhead for the year $10,000 -Estimated Direct Labor Hours for the year 5,000 -Actual Factory Overhead for the year $9,500 -Actual Direct Labor Hours for the year 5,010 1. What is the amount of the Applied Factory overhead? A. $9,969.90 B.$10,020.00 C.$9,468.90 D. Not enough information 2.Total factory payroll paid was $60,000 of which $5,000 is indirect labor. What is the journal entry? A. FOH $65,000; Wages Payable $65,000 B. WIP $55,000; Wages Payable $60,000; FOH $5,000 C. WIP $60,000, FOH 5,000; Cash $65,000 D. WIP $55,000; FOH 5,000; Cash $60,000 3. The Cost of Goods Manufactured ($20,00) was transferred out of the factory. What is the journal entry? A. FG $20,000; WIP $20,000 B. FG $20,000; COGS $20,000 C. WIP $20,000; FG $20,000 D. COGM $20,000; $20,000
ok ht D ences Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. a. $76,000 in raw materials were purchased for cash. b. $71,700 in raw materials were used in production. Of this amount, $66,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $151,900 were incurred and paid. Of this amount, $134,900 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,400 were incurred and paid. e. Manufacturing overhead of $127,100 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2.…
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ints) The following data have been taken from the accounting records of Larder Corporation for the just completed year. Sales. $2,100,000 $350,000 $385,000 $390,000 $225,000 $210,000 $210,000 $190,000 $135,000 $120,000 $195,000 $140,000 Purchases of raw materials Direct labor. Applied Manufacturing overhead Administrative expenses. Selling expenses. Raw materials inventory, beginning. Raw materials inventory, ending Work in process inventory, beginning. Work in process inventory, ending. Finished goods inventory, beginning.. Finished goods inventory, ending.. Required: a. Prepare a Schedule of Cost of Goods Manufactured in good form. b. Compute the Cost of Goods Sold. c. Using data from your answers above, prepare an Income Statement (using the traditional format).
Sheffield Corporation incurred the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchased raw materials on account $55,600. Raw Materials of $36,400 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,600 was classified as indirect materials. Factory labor costs incurred were $65,100, of which $51,800 pertained to factory wages payable and $13,300 pertained to employer payroll taxes payable. Time tickets indicated that $55,700 was direct labor and $9,400 was indirect labor. Manufacturing overhead costs incurred on account were $85,500. Depreciation on the company's office building was $8,700. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $94,000 were completed and transferred to finished goods. Finished goods costing $80,200 to manufacture were sold on account for $113,700. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent…