Required Record the transactions in T-accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Fanning’s beginning balances and data pertinent to the mixing department’s activities for Year 2 follow:
Accounts | Beginning Balances | ||
Cash | $ | 41,700 | |
Raw materials inventory | 14,600 | ||
Production supplies | 100 | ||
Work in process inventory (440,000 units) | 52,800 | ||
Common stock | $ | 109,200 | |
- Fanning Cola issued additional common stock for $56,000 cash.
- The company purchased raw materials and production supplies for $43,250 and $700, respectively, in cash.
- The company issued $45,700 of raw materials to the mixing department for the production of 500,000 units of Sweet Spring that were started in Year 2. A unit of soft drink is the amount needed to fill a bottle.
- The mixing department used 2,100 hours of labor during Year 2, consisting of 1,900 hours for direct labor and 200 hours for indirect labor. The average wage was $9.50 per hour. All wages were paid in Year 2 in cash.
- The predetermined
overhead rate was $1.50 per direct labor hour. - Actual overhead costs other than indirect materials and indirect labor for the year amounted to $700, which was paid in cash.
- The mixing department completed 700,000 units of Sweet Spring. The remaining inventory was 40 percent complete.
- The completed soft drink was transferred to the bottling department.
- The ending balance in the Production Supplies account was $550.
Required
-
Record the transactions in T-accounts.

Transcribed Image Text:Req A and B
Req C
Req D
Record the transactions in T-accounts. (The cash expenditures in events No. 2 and No. 4 should be combined into a single
amount in the cash account for each event. Round intermediate calculations to 2 decimal places.)
Cash
Raw Materials
Beg. bal.
Beg. bal.
End, bal.
End. bal.
Work in process Mixing
Work in process Bottling
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Manufacturing Overhead
Production Supplies
Beg. bal.
Beg. bal.
End, bal.
End. bal.
Common Stock
Beg. bal.
End. bal.
< Req C
Reg D >
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