“Japón” Stock Company. is a manufacturer of table tennis tables. The following raw materials are required to manufacture a table tennis table: - 1 medium density fiberboard (MDF) - 4 steel legs - ¼ Paint pot - Screws and glue - 1 mesh with support Production process begins with the incorporation of the MDF board. Then, up to 40% of production progress, the operators cut and polish the board with the production machines. At this point, the steel legs are added. During the last 60% of the process, the operators assemble and paint the table. Then, at the end of the process, the mesh with support is added. Therefore, labor is incorporated evenly throughout the entire production process. Paint, screws and glue are incorporated evenly in the last 60% of the process. And the production machines are depreciated evenly over the initial 40% of the process. Following information is available for June 2023: - Total salary of the factory workers was $1,250,000 and will be paid in July. - 40 MDF boards are purchased on credit at $20,000 each. - 200 steel legs are purchased on credit for $6,000 each. - 20 paint pots are purchased on credit for $8,000 each. - Screws and glue are purchased on credit for a total of $100,000. Half was used in June. - Machines were depreciated by $32,000 in June. - Selling and administrative expenses sum $1,400,000 and were paid in cash on 30 June. - During June, 12 ping pong tables were started and completed. In addition, 20 units were started but not finished: 15 units remained at 20% of the production process and 5 units at 40% (with all 4 legs incorporated into each table). - On 30 June, 15 ping pong tables are sold for $200,000 each, in cash. In addition, the company's inventory on 31 May was as follows: - 8 finished ping pong tables. Cost of each had been $100,000. - 25 backing nets cost $4,000 per unit. Company uses an absorption (indirect) costing system and FIFO method as a cost flow assumption. Assume that there are no taxes of any kind. Requested: make the journal for June 2023. NOTE: If you cannot find the unit cost of each finished product for June, assume it is $150,000. This will give you half the score for the sales entry and the transfer to finished goods entry.
“Japón” Stock Company. is a manufacturer of table tennis tables.
The following raw materials are required to manufacture a table tennis table:
- 1 medium density fiberboard (MDF)
- 4 steel legs
- ¼ Paint pot
- Screws and glue
- 1 mesh with support
Production process begins with the incorporation of the MDF board. Then, up to 40% of production progress, the operators cut and polish the board with the production machines. At this point, the steel legs are added. During the last 60% of the process, the operators assemble and paint the table. Then, at the end of the process, the mesh with support is added.
Therefore, labor is incorporated evenly throughout the entire production process. Paint, screws and glue are incorporated evenly in the last 60% of the process. And the production machines are
Following information is available for June 2023:
- Total salary of the factory workers was $1,250,000 and will be paid in July.
- 40 MDF boards are purchased on credit at $20,000 each.
- 200 steel legs are purchased on credit for $6,000 each.
- 20 paint pots are purchased on credit for $8,000 each.
- Screws and glue are purchased on credit for a total of $100,000. Half was used in June.
- Machines were depreciated by $32,000 in June.
- Selling and administrative expenses sum $1,400,000 and were paid in cash on 30 June.
- During June, 12 ping pong tables were started and completed. In addition, 20 units were started but not finished: 15 units remained at 20% of the production process and 5 units at 40% (with all 4 legs incorporated into each table).
- On 30 June, 15 ping pong tables are sold for $200,000 each, in cash.
In addition, the company's inventory on 31 May was as follows:
- 8 finished ping pong tables. Cost of each had been $100,000.
- 25 backing nets cost $4,000 per unit.
Company uses an absorption (indirect) costing system and FIFO method as a cost flow assumption. Assume that there are no taxes of any kind.
Requested: make the journal for June 2023.
NOTE: If you cannot find the unit cost of each finished product for June, assume it is $150,000. This will give you half the score for the sales entry and the transfer to finished goods entry.
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