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Instructions: 1) Prepare journal entries to record the operations summarized above. 2) Compute costs of goods manufactured from job A20. 3) Compute costs of goods manufactured from job A22. 4) Prepare gross profit section of income statement.

Instructions: 1) Prepare journal entries to record the operations summarized above. 2) Compute costs of goods manufactured from job A20. 3) Compute costs of goods manufactured from job A22. 4) Prepare gross profit section of income statement.

FINANCIAL ACCOUNTING
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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Answer all parts with correct explanation calculation narrations clearly for all steps and parts. Answer in text form please double underline answer all requirements and do not say about your guidelines. I need answer for all with all workings.

P2. Coyote Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. (unit = $) 1. Materials purchased on account $220,000, and factory wages incurred $90,000. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 40,000 20,000 A21 50,000 15,000 A22 38,000 17,000 A23 37,000 30,000 General factory use 5,000 8,000 Total 170,000 90,000 3. Insurance expense incurred for the manufacturing plant $60,000. 4. Depreciation on factory equipment $20,000. 5. Depreciation on the company's office building was $16,000. 6. Manufacturing overhead rate is 60% of direct material cost. 7. Jobs completed during the quarter: A20, A21, and A22. 8. Products manufactured from jobs A20 and A22 were sold for $120,000 and $110,000, respectively, on account. Instructions: 1) Prepare journal entries to record the operations summarized above. 2) Compute costs of goods manufactured from job A20. 3) Compute costs of goods manufactured from job A22. 4) Prepare gross profit section of income statement.
Transcribed Image Text:P2. Coyote Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. (unit = $) 1. Materials purchased on account $220,000, and factory wages incurred $90,000. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 40,000 20,000 A21 50,000 15,000 A22 38,000 17,000 A23 37,000 30,000 General factory use 5,000 8,000 Total 170,000 90,000 3. Insurance expense incurred for the manufacturing plant $60,000. 4. Depreciation on factory equipment $20,000. 5. Depreciation on the company's office building was $16,000. 6. Manufacturing overhead rate is 60% of direct material cost. 7. Jobs completed during the quarter: A20, A21, and A22. 8. Products manufactured from jobs A20 and A22 were sold for $120,000 and $110,000, respectively, on account. Instructions: 1) Prepare journal entries to record the operations summarized above. 2) Compute costs of goods manufactured from job A20. 3) Compute costs of goods manufactured from job A22. 4) Prepare gross profit section of income statement.
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