Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system: (a) Materials purchased on account $186,000 (b) Materials requisitioned: For production orders 161,500 For general factory use 8,700 (c) Factory labor used: On production orders 139,800 For general factory purposes 9,000 (d) Depreciation on factory equipment 40,000 (e) Factory overhead applied, based on machine hours 97,650 (f) Jobs finished 406,000 (g) Jobs shipped to customers: cost, $394,000; selling price 580,000 Enter an increase in Accumulated Depreciation as a negative value. In all other cases, enter increases in accounts as positive values and decreases as negative values. If an answer cell does not require an entry, leave it blank.
Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system: (a) Materials purchased on account $186,000 (b) Materials requisitioned: For production orders 161,500 For general factory use 8,700 (c) Factory labor used: On production orders 139,800 For general factory purposes 9,000 (d) Depreciation on factory equipment 40,000 (e) Factory overhead applied, based on machine hours 97,650 (f) Jobs finished 406,000 (g) Jobs shipped to customers: cost, $394,000; selling price 580,000 Enter an increase in Accumulated Depreciation as a negative value. In all other cases, enter increases in accounts as positive values and decreases as negative values. If an answer cell does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a
| (a) | Materials purchased on account | $186,000 | |
| (b) | Materials requisitioned: | ||
| For production orders | 161,500 | ||
| For general factory use | 8,700 | ||
| (c) | Factory labor used: | ||
| On production orders | 139,800 | ||
| For general factory purposes | 9,000 | ||
| (d) | 40,000 | ||
| (e) | Factory overhead applied, based on machine hours | 97,650 | |
| (f) | Jobs finished | 406,000 | |
| (g) | Jobs shipped to customers: cost, $394,000; selling price | 580,000 |
Enter an increase in
Transcribed Image Text:Enter an increase in Accumulated Depreciation as a negative value. In all other cases, enter increases in accounts as positive values and decreases as negative values. If an answer cell does not require an entry, leave it blank.
Stockholders'
Assets =
Liabilities +
Equity
Factory
Materials
Accumulated
Accounts
Stockholders'
Accounts Rec.
Work in Process
Finished Goods
Wages Payable
Overhead
Inventory
Depreciation
Payable
Equity
а.
b.
C.
d.
e.
f.
g.
Effect on Statement of Cash Flows
Effect on Income Statement
(Select "No Effect" if nothing will be reported)
(Select "No Effect" if nothing will be reported)
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