k. Sales on account: all of Job 120 for $111,000. 1. Adjusted for overallocated or underallocated manufacturing overhead. Requirements 1. Journalize the transactions for the company. 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process subsidiary ledger, and the Finished Goods Inventory subsid- iary ledger have been opened for your account's balance as given. Post the journal entries to the T-accounts using the transaction letter. 3. Prepare a trial balance at June 30, 2016. 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.
k. Sales on account: all of Job 120 for $111,000. 1. Adjusted for overallocated or underallocated manufacturing overhead. Requirements 1. Journalize the transactions for the company. 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process subsidiary ledger, and the Finished Goods Inventory subsid- iary ledger have been opened for your account's balance as given. Post the journal entries to the T-accounts using the transaction letter. 3. Prepare a trial balance at June 30, 2016. 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![116 chapter 17
Learning Objectives 2, 3, 4, 5
4. COGM $46,750
5. NI $19,150
P17-38B Preparing comprehensive accounting for manufacturing transactions
Teacher Stars produces stars for elementary teachers to reward their students. Teacher
Stars' trial balance on June 1 follows:
Account Title
Cash
Accounts Receivable
Inventories:
Raw Materials
Work-in-Process
Finished Goods
Plant Assets
TEACHER STARS
Trial Balance
June 1, 2016
Accumulated Depreciation
Accounts Payable
Wages Payable
Common Stock
Retained Earnings
Sales Revenue
Cost of Goods Sold
Manufacturing Overhead
Selling and Administrative Expenses
Balance
June transactions are summarized as follows:
a. Collections on account, $153,000.
Debit
$ 14,000
150,000
5,600
42.500
20,700
240,000
Job 120: Paper, $ 800
Job 121: Paper, $7,900
Indirect materials, $1,600
June 1 balances in the subsidiary ledgers were as follows:
• Raw Materials Inventory subsidiary ledger: Paper, $4,300; indirect materials, $1,300
• Work-in-Process Inventory subsidiary ledger: Job 120, $42,500; Job 12, $0
• Finished Goods Inventory subsidiary ledger: Large Stars, $9,700; Small Stars,
$11,000
Credit
$ 76,000
130,000
1.800
b. Selling and administrative expenses incurred and paid, $32,000.
c. Payments on account, $42,000.
d. Materials purchased on account: Paper, $24,500; indirect materials, $4,300.
e. Materials requisitioned and used in production:
f. Wages incurred during June, $38,000. Labor time records for the month: Job 120,
$3,700; Job 121, $18,300; indirect labor, $16,000.
g. Wages paid in June include the balance in the Wages Payable at May 31 plus
$34.900 of wages incurred during June.
135,000
130,000
Requirements
1. Journalize the transactions for the company.
2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger,
the Work-in-Process subsidiary ledger, and the Finished Goods Inventory subsid-
iary ledger have been opened for your account's balance as given. Post the journal
entries to the T-accounts using the transaction letter.
3. Prepare a trial balance at June 30, 2016.
h. Depreciation on plant and equipment, $2,800.
i. Manufacturing overhead allocated at the predetermined overhead allocation rate of
90% of direct labor cost.
4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of
goods manufactured for the month of June.
5. Prepare an income statement for the month of June.
j. Jobs completed during the month: Job 120 with 800,000 Large Stars at a total cost
of $50,330.
k. Sales on account: all of Job 120 for $111,000.
1. Adjusted for overallocated or underallocated manufacturing overhead.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa17e67b4-bac3-4240-92cf-08dbba93ab32%2Ffc78c8c4-366e-43b4-bdb2-de30ecae5805%2Fv3wx3plc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:116 chapter 17
Learning Objectives 2, 3, 4, 5
4. COGM $46,750
5. NI $19,150
P17-38B Preparing comprehensive accounting for manufacturing transactions
Teacher Stars produces stars for elementary teachers to reward their students. Teacher
Stars' trial balance on June 1 follows:
Account Title
Cash
Accounts Receivable
Inventories:
Raw Materials
Work-in-Process
Finished Goods
Plant Assets
TEACHER STARS
Trial Balance
June 1, 2016
Accumulated Depreciation
Accounts Payable
Wages Payable
Common Stock
Retained Earnings
Sales Revenue
Cost of Goods Sold
Manufacturing Overhead
Selling and Administrative Expenses
Balance
June transactions are summarized as follows:
a. Collections on account, $153,000.
Debit
$ 14,000
150,000
5,600
42.500
20,700
240,000
Job 120: Paper, $ 800
Job 121: Paper, $7,900
Indirect materials, $1,600
June 1 balances in the subsidiary ledgers were as follows:
• Raw Materials Inventory subsidiary ledger: Paper, $4,300; indirect materials, $1,300
• Work-in-Process Inventory subsidiary ledger: Job 120, $42,500; Job 12, $0
• Finished Goods Inventory subsidiary ledger: Large Stars, $9,700; Small Stars,
$11,000
Credit
$ 76,000
130,000
1.800
b. Selling and administrative expenses incurred and paid, $32,000.
c. Payments on account, $42,000.
d. Materials purchased on account: Paper, $24,500; indirect materials, $4,300.
e. Materials requisitioned and used in production:
f. Wages incurred during June, $38,000. Labor time records for the month: Job 120,
$3,700; Job 121, $18,300; indirect labor, $16,000.
g. Wages paid in June include the balance in the Wages Payable at May 31 plus
$34.900 of wages incurred during June.
135,000
130,000
Requirements
1. Journalize the transactions for the company.
2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger,
the Work-in-Process subsidiary ledger, and the Finished Goods Inventory subsid-
iary ledger have been opened for your account's balance as given. Post the journal
entries to the T-accounts using the transaction letter.
3. Prepare a trial balance at June 30, 2016.
h. Depreciation on plant and equipment, $2,800.
i. Manufacturing overhead allocated at the predetermined overhead allocation rate of
90% of direct labor cost.
4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of
goods manufactured for the month of June.
5. Prepare an income statement for the month of June.
j. Jobs completed during the month: Job 120 with 800,000 Large Stars at a total cost
of $50,330.
k. Sales on account: all of Job 120 for $111,000.
1. Adjusted for overallocated or underallocated manufacturing overhead.
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