Information on Kwon Manufacturing's activities for its first month of operations follows:a. Purchased $100,000 of raw materials on credit.b. Materials requisitions show the following materials used for the month.Job 201Job 202Total direct materialsIndirect materialsTotal materials used.Job 201Job 202Total direct labor$ 48,20023,600c. Time tickets show the following labor used for the month.Indirect laborTotal labor used71,8008,620$ 80,420$ 39,20012,60051,80024,200$ 76,000d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.e. Transferred Job 201 to Finished Goods Inventory.f. (1) Sold Job 201 for $163,760 on credit. (2) Record cost of goods sold for Job 201.g. Incurred the following actual other overhead costs for the month.Depreciation of factory equipmentRent on factory building (payable)Factory utilities (payable)Expired factory insurance.Total other factory overhead costs$ 32,0005008003,000$ 36,300 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.Beginning BalanceEnding balanceBeginning BalanceEnding balanceBeginning BalanceEnding balanceRaw Materials Inventory0Factory Overhead0Cost of Goods Sold00Beginning BalanceEnding balanceBeginning BalanceEnding balanceWork In Process Inventory0Finished Goods Inventory00

The direct costs includes direct materials, direct labor and factory overhead applied costs. The…

Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,000 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 48,200 23,600 71,800 8,620 $ 80,420 c. Time tickets show the following labor used for the month. Job 201 Job 202 Total direct labor Indirect labor $ 39,200 12,600 51,800 24,200

Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,000 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 48,200 23,600 71,800 8,620 $ 80,420 c. Time tickets show the following labor used for the month. Job 201 Job 202 Total direct labor Indirect labor $ 39,200 12,600 51,800 24,200

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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