[The following information applies to the questions displayed below.]Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit.Materials requisitions show the following materials used for the month. Job 201$ 49,900Job 20225,300Total direct materials75,200Indirect materials10,320Total materials used$ 85,520 Time tickets show the following labor used for the month. Job 201$ 40,900Job 20214,300Total direct labor55,200Indirect labor25,900Total labor used$ 81,100 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.Transferred Job 201 to Finished Goods Inventory.(1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201.Incurred the following actual other overhead costs for the month. Depreciation of factory equipment$ 33,700Rent on factory building (payable)670Factory utilities (payable)970Expired factory insurance4,700Total other factory overhead costs$ 40,040 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.Raw Materials InventoryWork in Process InventoryBeginning BalanceBeginning BalanceEnding balanceEnding balanceFactory OverheadFinished Goods InventoryBeginning BalanceBeginning BalanceEnding balanceEnding balanceCost of Goods SoldBeginning BalanceEnding balance Required information[The following information applies to the questions displayed below.]Information on Kwon Manufacturing's activities for its first month of operations follows:a. Purchased $101,700 of raw materials on credit.b. Materials requisitions show the following materials used for the month.Job 20149,90025,30075,20010,320Job 202Total direct materialsIndirect materialsTotal materials used$ 85,520c. Time tickets show the following labor used for the month.$ 40,90014,30055,20025,900Job 201Job 202Total direct laborIndirect laborTotal labor used$ 81,100d. 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 $168,860 on credit. (2) Record cost of goods sold for Job 201.g. Incurred the following actual other overhead costs for the month.$ 33,700670Depreciation of factory equipmentRent on factory building (payable)Factory utilities (payable)Expired factory insurance9704,700$ 40,040Total other factory overhead costsPost entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.

The overhead is applied to production on the basis of predetermined overhead rate.

Answered: Information on Kwon Manufacturing’s…

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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[The following information applies to the questions displayed below.]

Information on Kwon Manufacturing’s activities for its first month of operations follows:

Purchased $101,700 of raw materials on credit.
Materials requisitions show the following materials used for the month.

Job 201	$ 49,900
Job 202	25,300
Total direct materials	75,200
Indirect materials	10,320
Total materials used	$ 85,520

Time tickets show the following labor used for the month.

Job 201	$ 40,900
Job 202	14,300
Total direct labor	55,200
Indirect labor	25,900
Total labor used	$ 81,100

Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
Transferred Job 201 to Finished Goods Inventory.
(1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201.
Incurred the following actual other overhead costs for the month.

Depreciation of factory equipment	$ 33,700
Rent on factory building (payable)	670
Factory utilities (payable)	970
Expired factory insurance	4,700
Total other factory overhead costs	$ 40,040

Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
Raw Materials Inventory
Work in Process Inventory
Beginning Balance
Beginning Balance
Ending balance
Ending balance
Factory Overhead
Finished Goods Inventory
Beginning Balance
Beginning Balance
Ending balance
Ending balance
Cost of Goods Sold
Beginning Balance
Ending balance

Required information
[The following information applies to the questions displayed below.]
Information on Kwon Manufacturing's activities for its first month of operations follows:
a. Purchased $101,700 of raw materials on credit.
b. Materials requisitions show the following materials used for the month.
Job 201
49,900
25,300
75,200
10,320
Job 202
Total direct materials
Indirect materials
Total materials used
$ 85,520
c. Time tickets show the following labor used for the month.
$ 40,900
14,300
55,200
25,900
Job 201
Job 202
Total direct labor
Indirect labor
Total labor used
$ 81,100
d. 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 $168,860 on credit. (2) Record cost of goods sold for Job 201.
g. Incurred the following actual other overhead costs for the month.
$ 33,700
670
Depreciation of factory equipment
Rent on factory building (payable)
Factory utilities (payable)
Expired factory insurance
970
4,700
$ 40,040
Total other factory overhead costs
Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.

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