The following are business transactions for the last month of operations. a) $190,000 of materials were purchased on account. b) $174,000 of materials were requisitioned in production; of this amount, $161,000 were direct materials. c) Payroll totaled $225,000. Wages for the assembly line workers totaled $129,000, factory supervisors' salaries were $17,000, wages for the maintenance and janitorial staff in the factory totaled $9,000, and salaries and commissions for the selling and administrative personnel totaled $70,000. d) The company recorded $20,000 of depreciation on the factory. e) The company received a utility bill for $10,000. Of this amount, $7,800 was for the factory and $2,200 was for the administrative offices. f) $71,000 of manufacturing overhead was applied to production. g) Jobs costing $52,000 were completed. h) Sales amounted to $76,000. $50,000 of these were cash sales, the remaining were on credit. Cost to complete jobs that sold was $49,000. The following will be completed over multiple class sessions. (1) Use t-accounts to track the flow of cost from incurred to recognized. (2) Reconcile the manufacturing overhead account. (3) Create a schedule of cost of goods manufactured. (4) Create a schedule of cost of goods sold. (5) Create all journal entries for business activities.
The following are business transactions for the last month of operations. a) $190,000 of materials were purchased on account. b) $174,000 of materials were requisitioned in production; of this amount, $161,000 were direct materials. c) Payroll totaled $225,000. Wages for the assembly line workers totaled $129,000, factory supervisors' salaries were $17,000, wages for the maintenance and janitorial staff in the factory totaled $9,000, and salaries and commissions for the selling and administrative personnel totaled $70,000. d) The company recorded $20,000 of depreciation on the factory. e) The company received a utility bill for $10,000. Of this amount, $7,800 was for the factory and $2,200 was for the administrative offices. f) $71,000 of manufacturing overhead was applied to production. g) Jobs costing $52,000 were completed. h) Sales amounted to $76,000. $50,000 of these were cash sales, the remaining were on credit. Cost to complete jobs that sold was $49,000. The following will be completed over multiple class sessions. (1) Use t-accounts to track the flow of cost from incurred to recognized. (2) Reconcile the manufacturing overhead account. (3) Create a schedule of cost of goods manufactured. (4) Create a schedule of cost of goods sold. (5) Create all journal entries for business activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ACCT 2102-In-Class Exercises
Cost Flow & Journal Entries
The following are business transactions for the last month of operations.
a) $190,000 of materials were purchased on account.
b) $174,000 of materials were requisitioned in production; of this amount, $161,000
were direct materials.
c) Payroll totaled $225,000. Wages for the assembly line workers totaled $129,000,
factory supervisors' salaries were $17,000, wages for the maintenance and janitorial
staff in the factory totaled $9,000, and salaries and commissions for the selling and
administrative personnel totaled $70,000.
d) The company recorded $20,000 of depreciation on the factory.
e) The company received a utility bill for $10,000. Of this amount, $7,800 was for the
factory and $2,200 was for the administrative offices.
f) $71,000 of manufacturing overhead was applied to production.
g) Jobs costing $52,000 were completed.
h) Sales amounted to $76,000. $50,000 of these were cash sales, the remaining were on
credit. Cost to complete jobs that sold was $49,000.
The following will be completed over multiple class sessions.
(1) Use t-accounts to track the flow of cost from incurred to recognized.
(2) Reconcile the manufacturing overhead account.
(3) Create a schedule of cost of goods manufactured.
(4) Create a schedule of cost of goods sold.
(5) Create all journal entries for business activities.
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