nformation on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $100,300 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,500 Job 202 23,900 Total direct materials 72,400 Indirect materials 8,920 Total materials used $ 81,320 Time tickets show the following labor used for the month. Job 201 $ 39,500 Job 202 12,900 Total direct labor 52,400 Indirect labor 24,500 Total labor used $ 76,900 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 32,300 Rent on factory building (payable) 530 Factory utilities (payable) 830 Expired factory insurance 3,300 Total other factory overhead costs $ 36,960 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
nformation on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $100,300 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,500 Job 202 23,900 Total direct materials 72,400 Indirect materials 8,920 Total materials used $ 81,320 Time tickets show the following labor used for the month. Job 201 $ 39,500 Job 202 12,900 Total direct labor 52,400 Indirect labor 24,500 Total labor used $ 76,900 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 32,300 Rent on factory building (payable) 530 Factory utilities (payable) 830 Expired factory insurance 3,300 Total other factory overhead costs $ 36,960 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Information on Kwon Manufacturing’s activities for its first month of operations follows:
- Purchased $100,300 of raw materials on credit.
- Materials requisitions show the following materials used for the month.
| Job 201 | $ 48,500 |
|---|---|
| Job 202 | 23,900 |
| Total direct materials | 72,400 |
| Indirect materials | 8,920 |
| Total materials used | $ 81,320 |
- Time tickets show the following labor used for the month.
| Job 201 | $ 39,500 |
|---|---|
| Job 202 | 12,900 |
| Total direct labor | 52,400 |
| Indirect labor | 24,500 |
| Total labor used | $ 76,900 |
- Applied
overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. - Transferred Job 201 to Finished Goods Inventory.
- (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods sold for Job 201.
- Incurred the following actual other overhead costs for the month.
| $ 32,300 | |
| Rent on factory building (payable) | 530 |
| Factory utilities (payable) | 830 |
| Expired factory insurance | 3,300 |
| Total other |
$ 36,960 |
Transcribed Image Text:Beginning Balance
Ending balance
Beginning Balance
Ending balance
Beginning Balance
Raw Materials Inventory
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Factory Overhead
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Cost of Goods Sold
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Beginning Balance
Ending balance
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Ending balance
Work in Process Inventory
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Finished Goods Inventory
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