Sub-zero Inc. produces customized Art and uses a job costing system to accumulate costs in its factory. During the year, the following transactions were completed with respect to Job 20. a. Purchased raw material on account $200,000. b. Raw materials were issued from the storeroom for use in production $180,000 (70% direct and the balance indirect). c. Factory labor costs paid by check were $282,000. The job sheet indicated that $150,000 was direct labor and the balance accounted for indirect. d. Overhead costs incurred on account were $70,000. e. Manufacturing overhead was applied at the rate of 50% direct labor cost. f. The job was completed and transferred to the finish goods warehouse. g. The Art was sold for $400,000 to the St Lucia National Trust on credit. Required: i. Prepare ALL the journal entries or T-accounts for the above transactions. Calculate and dispose of any under or over-applied. ii.

Sub-zero Inc. produces customized Art and uses a job costing system to accumulate costs in its factory. During the year, the following transactions were completed with respect to Job 20. a. Purchased raw material on account $200,000. b. Raw materials were issued from the storeroom for use in production $180,000 (70% direct and the balance indirect). c. Factory labor costs paid by check were $282,000. The job sheet indicated that $150,000 was direct labor and the balance accounted for indirect. d. Overhead costs incurred on account were $70,000. e. Manufacturing overhead was applied at the rate of 50% direct labor cost. f. The job was completed and transferred to the finish goods warehouse. g. The Art was sold for $400,000 to the St Lucia National Trust on credit. Required: i. Prepare ALL the journal entries or T-accounts for the above transactions. Calculate and dispose of any under or over-applied. ii.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain the phrase “debits equal credits” with regard to journal entries.
Post the unadjusted balances and adjusting entries into the appropriate t-accounts.
Discuss the types of books of original entry. Describe how the accounting information flow from the invoice,ledger and to general ledger. Explain the importance of the books of original entry.
CREATE YOUR OWN FORM OF “CHART OF ACCOUNTS”
Identify the items from the following list that are likely to serve as source documents. Item a. Sales receipt b. Liability accounts c. Balance sheet d. Ledger e. Bank statement f. General journal g. Income statement h. Telephone bill i. Credit card receipt Is this a source document?
List the four special journals often used in a manual accounting information system. What types of transactions are recorded in each of the special journals?
How does the data flow from the transaction (e.g. MRI scan) to financial statements? Use the following key terms in your response: transaction, journal entry, general ledger, financial statement.
Show the requisite journal entries to correct the balance.
The first required step in the accounting cycle is: O journalizing transactions, posting transactions.. Oanalyzing transactions. O adjusting entries.
From the financial transactions in c, prepare the pro-forma templates for the following:i. Journal entriesii. Ledger accountsiii. Trial balance
Determine the difference in the following terms: posting, closing, balancing, journalizing.