P3-3A Job Cost Journal Entries Holiday Manufacturing had the following inventories at December 31, 2018, the end of its fiscal year: Materials inventory $ 19,000 Work-in-process inventory 20,000 Finished goods inventory 13,000 During January 2019, the following transactions occurred: 1. Purchased materials on account, $126,000. 2. Requisitioned direct materials of $110,000 and indirect materials of $20,000. 3. Inccurred wages payable, $61,000. 4. Assigned total wages payable, of which $11,000 was considered indirect labor. 5. Incurred other manufacturing overhead, $32,800. (Credit Accounts Payable.) 6. Applied manufacturing overhead on the basis of 120% of direct labor costs. 7. Determined completed production, $206,000. Use this information to determine the amount of WIP transferred to finished goods inventory. 8. Determined cost of goods sold, $203,000. Use this information to determine the reduction to finished good inventory. Required a. Prepare general journal entries to record these transactions. b. If the above transactions covered a full year's operations, prepare a journal entry to dispose of the overhead account balance. Assume that the balance is significant. Also assume that the following accounts contained the indicated amounts of manufacturing overhead applied during 2019. Work-in-process inventory $ 6,000 Finished goods 4,000 Cost of goods sold 50,000
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
| P3-3A | ||||||||||||
| Holiday Manufacturing had the following inventories at December 31, 2018, the end of its fiscal year: | ||||||||||||
| Materials inventory | $ 19,000 | |||||||||||
| Work-in-process inventory | 20,000 | |||||||||||
| Finished goods inventory | 13,000 | |||||||||||
| During January 2019, the following transactions occurred: | ||||||||||||
| 1. Purchased materials on account, $126,000. | ||||||||||||
| 2. Requisitioned direct materials of $110,000 and indirect materials of $20,000. | ||||||||||||
| 3. Inccurred wages payable, $61,000. | ||||||||||||
| 4. Assigned total wages payable, of which $11,000 was considered indirect labor. | ||||||||||||
| 5. Incurred other manufacturing |
||||||||||||
| 6. Applied manufacturing overhead on the basis of 120% of direct labor costs. | ||||||||||||
| 7. Determined completed production, $206,000. Use this information to determine the amount of WIP transferred to finished goods inventory. | ||||||||||||
| 8. Determined cost of goods sold, $203,000. Use this information to determine the reduction to finished good inventory. | ||||||||||||
| Required | ||||||||||||
| a. Prepare general journal entries to record these transactions. | ||||||||||||
| b. If the above transactions covered a full year's operations, prepare a |
||||||||||||
| Work-in-process inventory | $ 6,000 | |||||||||||
| Finished goods | 4,000 | |||||||||||
| Cost of goods sold | 50,000 |
|
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