Inception Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: 1(Click the icon to view the data.) Inception Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Read the requirements?. Requirement 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $127,000.
Inception Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: 1(Click the icon to view the data.) Inception Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Read the requirements?. Requirement 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $127,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
See attached question
![Pre
Payme
cludes E
rges
%24
te: 10/01/21
Course: ACC 202 64 Cost Accounitng
Inception Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020:
1(Click the icon to view the data.)
Inception Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect materials are
insignificant so there is no inventory account for indirect materials.
Read the requirements?.
Requirement 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For
each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as
backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.)
Record the purchase of direct materials, $127,000.
Journal Entry
Accounts
Debit
Credit
(1.)
|(1)
(2)
(3)
()
Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.)
Source documents
Subsidiary ledgers
(9)
(8)
(1.)
(5)
(2)
(6)
(11)
|(12)
(13)
(14)
Record the direct materials used.
21
Chapter 4 Homework-sehrish bashir
Costs incurred:
Purchases of direct materials (net) on credit
$ 127,000
000'
54,700
Direct manufacturing labor cost
Indirect labor
Depreciation, factory equipment
7,800
Depreciation, office equipment
Maintenance, factory equipment
Miscellaneous factory overhead
Rent, factory building
000'6
Advertising expense
Sales commissions
Inventories:
January 1, 2020
December 31, 2020
9,400 $
Direct materials
000
Work in process
000
Finished goods
Requirements
Jourmal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced a
backup for the entry.
Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For ea
r he journal entries to T-accounts for all of the inventories. Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufactur
Overhead Allocated Account.
2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c658ca6-59a9-44b0-9b05-41a4a50a8ef8%2Ffc85b15d-d0c3-4b4c-8550-ad1d6746f3ba%2Fhh2s6q.jpeg&w=3840&q=75)
Transcribed Image Text:Pre
Payme
cludes E
rges
%24
te: 10/01/21
Course: ACC 202 64 Cost Accounitng
Inception Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020:
1(Click the icon to view the data.)
Inception Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect materials are
insignificant so there is no inventory account for indirect materials.
Read the requirements?.
Requirement 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For
each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as
backup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.)
Record the purchase of direct materials, $127,000.
Journal Entry
Accounts
Debit
Credit
(1.)
|(1)
(2)
(3)
()
Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.)
Source documents
Subsidiary ledgers
(9)
(8)
(1.)
(5)
(2)
(6)
(11)
|(12)
(13)
(14)
Record the direct materials used.
21
Chapter 4 Homework-sehrish bashir
Costs incurred:
Purchases of direct materials (net) on credit
$ 127,000
000'
54,700
Direct manufacturing labor cost
Indirect labor
Depreciation, factory equipment
7,800
Depreciation, office equipment
Maintenance, factory equipment
Miscellaneous factory overhead
Rent, factory building
000'6
Advertising expense
Sales commissions
Inventories:
January 1, 2020
December 31, 2020
9,400 $
Direct materials
000
Work in process
000
Finished goods
Requirements
Jourmal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced a
backup for the entry.
Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For ea
r he journal entries to T-accounts for all of the inventories. Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufactur
Overhead Allocated Account.
2.
![Chapler 4-Homework-shrsh bashi
Journal Entry
Accounts
Debit
(24)
(18)
Now select the appropriate source documents and subledgers for the direct materials used. (Only complete the necessary answer boxes)
Source documents
Subsidiary ledgers
(02)
(22)
(1)
(24)
(25)
(92)
(28)
Record the direct and indirect labor payable in a single entry, $87,000 and $54,700 respectively.
Journal Entry
Accounts
Debit
Credit
(62)
(0)
(32)
Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.)
Source documents
(')
(33)
(35)
(34)
(36)
(37)
|(38)
(0)
(42)
(41)
10/1/2021
Prepare a consolidated entry to record the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and the
miscollaneous factory overhead payable.
Chapter 4- Homework-sehrish bashir
Journal Entry
Accounts
Debit
(43)
(44)
(45)
(46)
(7)
Now select the appropriate source documents and subledgers for the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid
factory rent expired and the miscellaneous factory overhead transactions. (Only complete the necessary answer boxes.)
Source documents
Subsidiary ledgers
(4.) (48)
(49)
(51)
(52)
(53)
(54)
(55)
|(57)
(5)
Record the manufacturing overhead allocated.
Journal Entry
Accounts
Debit
Credit
(58)
(5)
(09)
(61)
Now select the appropriate source documents and subledgers for the manufacturing overhead allocated transactions. (Only complete the necessary answer boxes.)
10/1/2021
Chapter 4 - Homework-sehrish bashir
Source documents
Subsidiary ledgers
(5.) (62)
(64)
(63)
|(65)
(68)
(7)
(69)
(71)
Record the transfer of completed jobs.
Journal Entry
Accounts
Debit
Credit
(72)
('9)
(73)
(74)
(75)
Now select the appropriate source documents and subledgers for the transfer of completed job transaction. (Only complete the necessary answer boxes.)
Source documents
Subsidiary ledgers
(76)
|(77)
(78)
(79)
(81)
(08)
(82)
(83)
(84)
(85)
Record the cost of goods sold.
Journal Entry
Accounts
Debit
Credit
(86)
(2)
(87)
(88)
(68)
Now select the appropriate source documents and subledgers for the cost of goods sold transactions. (Only complete the necessary answer boxes.)
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
Chapter 4 - Homework-sehrish bashir
10/1/2021
Subsidiary ledgers
Source documents
(91)
(2)
(06)
(92)
(93)
(94)
(95)
(96)
(98)
(69)
Prepare a consolidated entry to record the depreciation on office equipment, the commissions payable and the advertising payable.
Journal Entry
Debit
Credit
Accounts
(00)
|(101)
(8.)
|(102)
|(103)
(104)
(105)
Now select the appropriate source documents and subledgers for the depreciation on office equipment, the commissions and the advertising transactions. (Only
complete the necessary answer boxes.)
Subsidiary ledgers
Source documents
(107)
(8.) (106)
(108)
(111)
(110)
(112)
|(113)
(115)
(114)
Dispose of over- or underallocated manufacturing overhead.
Chapter 4 - Homework-sehrish bashir
10/1/2021
Journal Entry
Debit
Credit
Accounts
(116)
|(117)
(118)
(119)
Now select the appropriate source documents and subledgers for the over- or underallocated manufacturing overhead transaction. (Only complete the necessary
answer boxes.)
Subsidiary ledgers
Source documents
(121)
|(120)
(9)
(122)
(123)
(125)
(124)
(127)
(126)
Requirement 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the
Manufacturing Overhead Allocated Account.
(129)
(128)
Post entries (1) through (9) to the accounts below, then calculate the ending balance in each account. (For accounts with a $0 balance, leave the balance cells blank.)
Review the journal entries from requirement 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c658ca6-59a9-44b0-9b05-41a4a50a8ef8%2Ffc85b15d-d0c3-4b4c-8550-ad1d6746f3ba%2Fs1uowc.jpeg&w=3840&q=75)
Transcribed Image Text:Chapler 4-Homework-shrsh bashi
Journal Entry
Accounts
Debit
(24)
(18)
Now select the appropriate source documents and subledgers for the direct materials used. (Only complete the necessary answer boxes)
Source documents
Subsidiary ledgers
(02)
(22)
(1)
(24)
(25)
(92)
(28)
Record the direct and indirect labor payable in a single entry, $87,000 and $54,700 respectively.
Journal Entry
Accounts
Debit
Credit
(62)
(0)
(32)
Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.)
Source documents
(')
(33)
(35)
(34)
(36)
(37)
|(38)
(0)
(42)
(41)
10/1/2021
Prepare a consolidated entry to record the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and the
miscollaneous factory overhead payable.
Chapter 4- Homework-sehrish bashir
Journal Entry
Accounts
Debit
(43)
(44)
(45)
(46)
(7)
Now select the appropriate source documents and subledgers for the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid
factory rent expired and the miscellaneous factory overhead transactions. (Only complete the necessary answer boxes.)
Source documents
Subsidiary ledgers
(4.) (48)
(49)
(51)
(52)
(53)
(54)
(55)
|(57)
(5)
Record the manufacturing overhead allocated.
Journal Entry
Accounts
Debit
Credit
(58)
(5)
(09)
(61)
Now select the appropriate source documents and subledgers for the manufacturing overhead allocated transactions. (Only complete the necessary answer boxes.)
10/1/2021
Chapter 4 - Homework-sehrish bashir
Source documents
Subsidiary ledgers
(5.) (62)
(64)
(63)
|(65)
(68)
(7)
(69)
(71)
Record the transfer of completed jobs.
Journal Entry
Accounts
Debit
Credit
(72)
('9)
(73)
(74)
(75)
Now select the appropriate source documents and subledgers for the transfer of completed job transaction. (Only complete the necessary answer boxes.)
Source documents
Subsidiary ledgers
(76)
|(77)
(78)
(79)
(81)
(08)
(82)
(83)
(84)
(85)
Record the cost of goods sold.
Journal Entry
Accounts
Debit
Credit
(86)
(2)
(87)
(88)
(68)
Now select the appropriate source documents and subledgers for the cost of goods sold transactions. (Only complete the necessary answer boxes.)
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
Chapter 4 - Homework-sehrish bashir
10/1/2021
Subsidiary ledgers
Source documents
(91)
(2)
(06)
(92)
(93)
(94)
(95)
(96)
(98)
(69)
Prepare a consolidated entry to record the depreciation on office equipment, the commissions payable and the advertising payable.
Journal Entry
Debit
Credit
Accounts
(00)
|(101)
(8.)
|(102)
|(103)
(104)
(105)
Now select the appropriate source documents and subledgers for the depreciation on office equipment, the commissions and the advertising transactions. (Only
complete the necessary answer boxes.)
Subsidiary ledgers
Source documents
(107)
(8.) (106)
(108)
(111)
(110)
(112)
|(113)
(115)
(114)
Dispose of over- or underallocated manufacturing overhead.
Chapter 4 - Homework-sehrish bashir
10/1/2021
Journal Entry
Debit
Credit
Accounts
(116)
|(117)
(118)
(119)
Now select the appropriate source documents and subledgers for the over- or underallocated manufacturing overhead transaction. (Only complete the necessary
answer boxes.)
Subsidiary ledgers
Source documents
(121)
|(120)
(9)
(122)
(123)
(125)
(124)
(127)
(126)
Requirement 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the
Manufacturing Overhead Allocated Account.
(129)
(128)
Post entries (1) through (9) to the accounts below, then calculate the ending balance in each account. (For accounts with a $0 balance, leave the balance cells blank.)
Review the journal entries from requirement 1.
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