S. Income statement; cost of goods sold statement; faciory overhead anaiysis. October 1, the accountant of Columbus Company prepared a trial balance from wiic te following accounts were extracted: Finished Goods (2,800 units). Work in Process (1,200 units). $ 9,800 4,070 40,700 48,000 Materials and Supplies.. Buildings.. Accumulated Depreciation-Buildings. Machinery and Equipmen.. Accumulated Depreciation-Machinery and Equipment. Office Equipment... Accumulated Depreciation-Office Equipment. Accrued Payroll.. $ 6,000 96,000 37,500 3,200 1,000 650 The following transactions and other data have been made available for October: Purchased materials and supples. Pald factory overhead.. Paid markeling expenses.. Paid administrative expenses. Requisitions for: Direct materials. $ 24,800 20,100 25,050 19,700 29,800 3,950 Indirect materials.. Depreciation: Building, 5% (75% to manufacturing, 15% to marketing, and 10% to administrative expenses) Machinery and equipment, 10% Office equipment, 15% (40% to marketing and 60% to administrative expenses) Sales (20,700 units). Sales retums and allowances. Cash paymants for: Accounts payable. Payrol. Distribution of payroll earned: Direct labor. 144,900 1,300 75,000 21,800 18,500 4,400 Indirect labor. Cash collected from customers. 116,90 27,450 Applied factory overhead. Units transferred to finished goods, 20,400 Cost of goods'sold is calculated on the fifo basis. Work In process inventory on October 31. 4,440 Required: (1) Prepare In detall the cost of goods sold section of the income statament for October, assuming that over- or underapplied factory overhead is deferred until the end of the calendar year. (2) Prepare the income statement for October. (3) Calculate the amount of over- or underapplled factory overhend for October.
S. Income statement; cost of goods sold statement; faciory overhead anaiysis. October 1, the accountant of Columbus Company prepared a trial balance from wiic te following accounts were extracted: Finished Goods (2,800 units). Work in Process (1,200 units). $ 9,800 4,070 40,700 48,000 Materials and Supplies.. Buildings.. Accumulated Depreciation-Buildings. Machinery and Equipmen.. Accumulated Depreciation-Machinery and Equipment. Office Equipment... Accumulated Depreciation-Office Equipment. Accrued Payroll.. $ 6,000 96,000 37,500 3,200 1,000 650 The following transactions and other data have been made available for October: Purchased materials and supples. Pald factory overhead.. Paid markeling expenses.. Paid administrative expenses. Requisitions for: Direct materials. $ 24,800 20,100 25,050 19,700 29,800 3,950 Indirect materials.. Depreciation: Building, 5% (75% to manufacturing, 15% to marketing, and 10% to administrative expenses) Machinery and equipment, 10% Office equipment, 15% (40% to marketing and 60% to administrative expenses) Sales (20,700 units). Sales retums and allowances. Cash paymants for: Accounts payable. Payrol. Distribution of payroll earned: Direct labor. 144,900 1,300 75,000 21,800 18,500 4,400 Indirect labor. Cash collected from customers. 116,90 27,450 Applied factory overhead. Units transferred to finished goods, 20,400 Cost of goods'sold is calculated on the fifo basis. Work In process inventory on October 31. 4,440 Required: (1) Prepare In detall the cost of goods sold section of the income statament for October, assuming that over- or underapplied factory overhead is deferred until the end of the calendar year. (2) Prepare the income statement for October. (3) Calculate the amount of over- or underapplled factory overhend for October.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve all the Requirements
Transcribed Image Text:5.. Income statement; cost of goods sold statement; faciory overhead anaiysis.
October 1, the accountant of Columbus Company prepared a trial balance from wiich the
following accounts were extracted:
Finished Goods (2,800 units)..
Work in Process (1,200 units).
Materials and Supplies..
Buildings..
Accumulated Depreciation-Buildings.
Machinery and Equipmen..
Accumulated Depreciation-Machinery and Equipment..
Office Equipment..
Accumulated Depreciation-Office Equipment..
Accrued Payroll..
$ 9,800
4,070
40,700
48,000
$ 6,000
96,000
37,500
3,200
1,000
650
SPL
The following transactions and other data have been made available for October:
Purchased materials and supplles.
Pald factory overhead.
Paid markeling expenses.
Pald administrative expenses..
Requisitions for:
Direct materials..
Indirect materials.
Depreciation:
Building, 5% (75% to manufacturing, 15% to marketing, and 10% to
administrative expenses)
Machinery and equipment, 10%
Office equipment, 15% (40% to marketing and 60% to administrative
expenses)
Sales (20,700 units)...
Sales retums and allowances.
$ 24,806
20,100
25,050
19,700
29,800
3,950
144,900
1,300
Cash payments for:
Accounts payabie.
Рayrol..
Distribution of payroll earned:
Direct labor.
Indirect labor.
Cash collected from customers..
75,000
21,800
18,600
4,400
116,900
27,450
Appled factory overhead.
Units transferred to finished goods, 20,400
Cost of goods' old is calculated on the fifo basis.
Work In process inventory on October 31.
4,440
Required:
(1) Prepare In detal the cost of goods sold section of the income statament for
October, assuming that over- or underapplied factory overhead is deferred until
the end of the calendar year.
(2) Prepare the income statement for October.
(3) Calculate the amount of over- or underapplled factory overhend for October.
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