Information on Kwon Manufacturing’s activities for its first month of operations follows: a. Purchased $101,100 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 49,300 Job 202 24,700 Total direct materials 74,000 Indirect materials 9,720 Total materials used $ 83,720 c. Time tickets show the following labor used for the month. Job 201 $ 40,300 Job 202 13,700 Total direct labor 54,000 Indirect labor 25,300 Total labor used $ 79,300 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $167,060 on credit. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,100 Rent on factory building (payable) 610 Factory utilities (payable) 910 Expired factory insurance 4,100 Total other factory overhead costs $ 38,720 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
Information on Kwon Manufacturing’s activities for its first month of operations follows: a. Purchased $101,100 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 $ 49,300 Job 202 24,700 Total direct materials 74,000 Indirect materials 9,720 Total materials used $ 83,720 c. Time tickets show the following labor used for the month. Job 201 $ 40,300 Job 202 13,700 Total direct labor 54,000 Indirect labor 25,300 Total labor used $ 79,300 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $167,060 on credit. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,100 Rent on factory building (payable) 610 Factory utilities (payable) 910 Expired factory insurance 4,100 Total other factory overhead costs $ 38,720 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Information on Kwon Manufacturing’s activities for its first month of operations follows:
a. Purchased $101,100 of raw materials on credit.
b. Materials requisitions show the following materials used for the month.
| Job 201 | $ 49,300 |
|---|---|
| Job 202 | 24,700 |
| Total direct materials | 74,000 |
| Indirect materials | 9,720 |
| Total materials used | $ 83,720 |
c. Time tickets show the following labor used for the month.
| Job 201 | $ 40,300 |
|---|---|
| Job 202 | 13,700 |
| Total direct labor | 54,000 |
| Indirect labor | 25,300 |
| Total labor used | $ 79,300 |
d. Applied
e. Transferred Job 201 to Finished Goods Inventory.
f. Sold Job 201 for $167,060 on credit.
g. Incurred the following actual other overhead costs for the month.
| $ 33,100 | |
| Rent on factory building (payable) | 610 |
| Factory utilities (payable) | 910 |
| Expired factory insurance | 4,100 |
| Total other |
$ 38,720 |
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