Mighty Stars produces stars for elementary teachers to reward their students. Mighty Stars' trial balance on June 1 follows: June transactions are summarized as follows: A (Click the icon to view the transactions.) E (Click the icon to view the trial balance.) June 1 balances in the subsidiary ledgers were as follows: More Info A (Click the icon to view the balances.) Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Exclude explana a. Collections on account, $145,000. b. Selling and administrative expenses incurred and paid, $32,000. c. Payments on account, $39,000. d. Materials purchased on account: Paper, $24,000; indirect materials, $4,200. e. Materials requisitioned and used in production: a. Collections on account, $145,000 Date Accounts Debit Credit a. Job 120: Paper, 950 $ 7,900 $ 1,200 Job 121: Paper, Indirect materials, f. Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect labor, $18,400. g. Wages paid in June include the balance in the Wages Payable at May 31 plus $36,100 of wages incurred during June. h. Depreciation on plant and equipment, $2,500. i. Manufacturing overhead allocated at the predetermined overhead allocation rate j. Jobs completed during the month: Job 120 with 700,000 Large Stars at a total cost of $47,430. k. Sales on account: all of Job 120 for $104,000. I. Adjusted for overallocated or underallocated manufacturing overhead. 80% of direct labor costs.
Mighty Stars produces stars for elementary teachers to reward their students. Mighty Stars' trial balance on June 1 follows: June transactions are summarized as follows: A (Click the icon to view the transactions.) E (Click the icon to view the trial balance.) June 1 balances in the subsidiary ledgers were as follows: More Info A (Click the icon to view the balances.) Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Exclude explana a. Collections on account, $145,000. b. Selling and administrative expenses incurred and paid, $32,000. c. Payments on account, $39,000. d. Materials purchased on account: Paper, $24,000; indirect materials, $4,200. e. Materials requisitioned and used in production: a. Collections on account, $145,000 Date Accounts Debit Credit a. Job 120: Paper, 950 $ 7,900 $ 1,200 Job 121: Paper, Indirect materials, f. Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect labor, $18,400. g. Wages paid in June include the balance in the Wages Payable at May 31 plus $36,100 of wages incurred during June. h. Depreciation on plant and equipment, $2,500. i. Manufacturing overhead allocated at the predetermined overhead allocation rate j. Jobs completed during the month: Job 120 with 700,000 Large Stars at a total cost of $47,430. k. Sales on account: all of Job 120 for $104,000. I. Adjusted for overallocated or underallocated manufacturing overhead. 80% of direct labor costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 7
Transcribed Image Text:June transactions are summarized as follows:
Mighty Stars produces stars for elementary teachers to reward their students. Mighty Stars' trial balance on June 1
follows:
E (Click the icon to view the trial balance.)
A (Click the icon to view the transactions.)
June 1 balances in the subsidiary ledgers were as follows:
A (Click the icon to view the balances.)
More Info
Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Exclude explana
a. Collections on account, $145,000.
b. Selling and administrative expenses incurred and paid, $32,000.
c. Payments on account, $39,000.
d. Materials purchased on account: Paper, $24,000; indirect materials, $4,200.
e. Materials requisitioned and used in production:
a. Collections on account, $145,000
Date
Accounts
Debit
Credit
а.
Job 120: Paper,
950
Job 121: Paper,
$ 7,900
Indirect materials,
$ 1,200
f. Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect
labor, $18,400.
g. Wages paid in June include the balance in the Wages Payable at May 31 plus $36,100 of wages incurred during
June.
Depreciation on plant and equipment, $2,500.
i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 80% of direct labor costs.
j. Jobs completed during the month: Job 120 with 700,000 Large Stars at a total cost of $47,430.
k. Sales on account: all of Job 120 for $104,000.
I. Adjusted for overallocated or underallocated manufacturing overhead.
h.
Transcribed Image Text:Question Help
Data Table
hsactions are summarized as follows:
k the icon to view the transactions.)
Balance
Account Title
Debit
Credit
requirements.
Cash
$
14,000
Accounts Receivable
160,000
I entries.)
Inventories:
Raw Materials
6,000
i More Info
Work-in-Process
40,000
Finished Goods
20,400
Property, Plant, and Equipment
220,000
Raw Materials Inventory subsidiary ledger: Paper, $4,000; indirect materials, $2,000
Accumulated Depreciation
75,000
Work-in-Process Inventory subsidiary ledger: Job 120, $40,000; Job 121, $0
Accounts Payable
134,000
Finished Goods Inventory subsidiary ledger: Large Stars, $9,900; Small Stars, $10,500
Wages Payable
2,600
Common Stock
139,000
Print
Done
Retained Earnings
109,800
Sales Revenue
Print
Done
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