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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.

FINANCIAL ACCOUNTING
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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Information on Kwon Manufacturing’s activities for its first month of operations follows:
 

 

  1. Purchased $100,300 of raw materials on credit.
  2. 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

 

  1. 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

 

  1. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
  2. Transferred Job 201 to Finished Goods Inventory.
  3. (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods sold for Job 201.
  4. 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.

Beginning Balance Ending balance Beginning Balance Ending balance Beginning Balance Raw Materials Inventory 0 0 Factory Overhead 0 0 Cost of Goods Sold 0 Beginning Balance Ending balance Beginning Balance Ending balance Work in Process Inventory 0 0 Finished Goods Inventory 0 0
Transcribed Image Text:Beginning Balance Ending balance Beginning Balance Ending balance Beginning Balance Raw Materials Inventory 0 0 Factory Overhead 0 0 Cost of Goods Sold 0 Beginning Balance Ending balance Beginning Balance Ending balance Work in Process Inventory 0 0 Finished Goods Inventory 0 0
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