Newcomb Manufacturing Company was started on January 1, Year 1, when it acquired $3,900 cash from the issue ofcommon stock. During the first year of operation, $2,700 of direct raw materials was purchased with cash, and $1,550 ofthe materials was used to make products. Direct labor costs of $2,900 were paid in cash. Newcomb applied $830 ofoverhead cost to the Work in Process account. Cash payments of $830 were were made for actual overhead costs. Thecompany completed products that cost $3,500 and sold goods that had cost $2,720 for $3,900 cash. Selling andadministrative expenses of $670 were paid in cash. Required a. Prepare T - accounts and record the events affectingNewcomb Manufacturing. Include closing entries. b1. Prepare a schedule of cost of goods manufactured and sold. b2.Prepare an income statement. b3. Prepare a balance sheet.

Balance sheet:Note: The balance sheet assets don't equal liabilities and equity because there was…

Answered: Newcomb Manufacturing Company was…

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 events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: • Purchased $404,710 of materials • Used $344,090 of direct materials in production • Incurred $298,900 of direct labor wages • Applied factory overhead at a rate of 78% of direct labor cost • Transferred $814,310 of work in process to finished goods • Sold goods with a cost of $781,480 • Sold goods for $1,396,720 • Incurred $319,130 of selling expenses • Incurred $120,230 of administrative expenses Required: A. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. B. Determine the inventory balances at the end of the first month of operations.
Uhtred Manufacturing had the following transactions in October: Purchased raw materials on account, $58,800. Used materials in production: $21,900 in the Mixing Department; $4,800 in the packaging Department; $920 in indirect materials. Incurred labor costs: $7,500 in the Mixing Department; $4,050 in the Packaging Department; $2,520 in indirect labor. Incurred manufacturing overhead costs: $9,540 in machinery depreciation; paid $2,890 for rent and paid for utilities at a cost of $1,920. Prepare the journal entries for Uhtred Manufacturing.
Wildhorse Company purchases $61,000 of raw materials on account, and it incurs $73,200 of factory labor costs. Supporting records show that (a) the Assembly Department used $29,280 of direct materials and $42,700 of direct labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Mar. 31 Work in Process - Assembly Work in Process - Finishing Raw Materials Inventory Debit 29280 31720 6100 Credit 61000
Wildhorse Corporation incurred the following costs while manufacturing its product. Materials used in product $127,700 Advertising expense $48,000 Depreciation on plant 63,100 Property taxes on plant 15,000 Property taxes on store 7,740 Delivery expense 25,000 Labor costs of assembly-line workers 116,700 Sales commissions 36,000 Factory supplies used 29,600 Salaries paid to sales clerks 58,100 Work in process inventory was $14,700 at January 1 and $17,400 at December 31. Finished goods inventory was $63,200 at January 1 and $45,900 at December 31. (a) Compute cost of goods manufactured. Cost of goods manufactured $
Uhtred Manufacturing had the following transactions in October: Purchased raw materials on account, $58,800. Used materials in production: $21,900 in the Mixing Department; $4,800 in the packaging Department; $920 in indirect materials. Incurred labor costs: $7,500 in the Mixing Department; $4,050 in the Packaging Department; $2,520 in indirect labor. Incurred manufacturing overhead costs: $9,540 in machinery depreciation; paid $2,890 for rent and paid for utilities at a cost of $1,920. Prepare the journal entries for Uhtred Manufacturing. Journal Date Description Debit Credit 1 1 2 2 2 2 3 3 3 3 4 4 4
Barry Pottery Supplies manufacturers supplies used during the pottery process. They have multiple processes, the first of which is Molding. The following information relates to the Molding beginning balance: 5,300 physical units $184,700 beginning cost During the period, 12,400 additional physical units are started. An additional costs of $77,900 in direct materials and $84,000 in manufacturing overhead are incurred. Additionally, 1,890 direct labor hours were incurred. Factory laborers are paid at a rate of $50 per hour. At the end of the period, 6,900 physical units remained in progress. These physical units were 60% complete. Using the information provided, calculate the work in progress ending balance. Round your answer to the nearest whole dollar.
5. Ehrlich Corporation incurred the following transactions. 1. Purchased raw materials on account $48,000. 2. Raw Materials of $43,900 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,000 was classified as indirect materials. 3. Factory labor costs incurred were $87,000. Time tickets indicated that $82,000 was direct labor and the rest was indirect labor. Direct laborers were paid at a rate of $20 per hour. 4. Rent incurred was $79,500. 70% was for the factory and 30% was for the corporate offices. 5. Factory depreciation was $13,000. 6. Administrative salaries accrued were $25,000. 7. Advertising costs of $10,000 were incurred on account. 8. Manufacturing overhead was applied at the rate of $16 per direct labor hour. 9. Goods costing $90,000 were completed and transferred to finished goods. 10. Finished goods costing $80,000 to manufacture were sold at a profit of $40,000. Instructions: Journalize the transactions.
QUESTION 9 10 p The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000from the Casting Department The conversion cost for the period in the Rolling Department is $81,200 ($54,700 factory overhead applied and $26,500 direct labor). The total cost transferred to Finished Goods for the period was $553,200. The Rolling Department had a Beginning Inventory of $25,000 Journalize the cost of transferred out to Finished Goods. Work in Process - Rolling 553,200 Finished Goods 553,200 Finished Goods 553,200 Work in Process - Rolling 553,200 Finished Goods 510,000 Work in Process - Rolling 510,000 Work in Process Rolling 510,000 Finished Goods 510,000
Blossom Company purchases $50,300 of direct raw materials and it incurs $65,400 of direct factory labor costs. Supporting records show that (a) the Assembly Department used $25,800 of direct raw materials and $38,000 of direct factory labor, and (b) the Finishing Department used the remainder. Record the assignment of the costs to the processing departments using the following format. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials used Assign direct factory labor Raw Materials Inventory $ $ Manufacturing Costs Factory Labor Manufacturing Overhead $ $ Assembly Work in Process $ Finishing
Larned Corporation recorded the following transactions for the just completed month. a. $86,000 in raw materials were purchased on account. b. $84,000 in raw materials were used in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $120,500 were paid in cash. Of this amount, $100,500 was for direct labor and the remainder was for indirect labor. d. Depreciation of $197,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 23 4 $86,000 in raw materials were purchased on account. Note: Enter debits before credits. Transaction General Journal a. Record entry Clear entry Debit Credit View general journal
Ivanhoe Company purchases $54,000 of raw materials on account, and it incurs $64,800 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,920 of direct materials and $37,800 of direct labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the costs to the processing departments on March 31. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 31 (To record materials used) (To assign factory labor to production) Debit Credit
Sunland Corporation incurred the following transactions. Purchased raw materials on account $43,550. Raw Materials of $33,840 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,420 was classified as indirect materials. Factory labor costs incurred were $56,320. Time tickets indicated that $50,760 was direct labor and $5,560 was indirect labor. Manufacturing overhead costs incurred on account were $75,670. Depreciation on the company's office building was $7,600. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 1. 2. 3. 4. 5. 6. 8. 9. Goods costing $82,720 were completed and transferred to finished goods. Finished goods costing $70,500 to manufacture were sold on account for $96,820. Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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