Explanation a. Prepare journal entry to record summarize the total manufacturing costs applied to production in June. Account titles and Explanation Debit in $ Credit in $ Work in process inventory 159,000 Direct materials 89,750 Direct labor 28,975 Manufacturing overhead 40,275 (To record cost assigned to production) Table (1) Work in process inventory is a current asset, and it is increased. Therefore, debit work in process inventory account for $159,000. Direct materials are a current asset, and it is decreased. Therefore, credit direct materials account for $89,750. Direct labor is a current asset, and it is decreased. Therefore, credit direct labor account for $28,975. Manufacturing overhead is a component of stockholders’ equity , and it is increased. Therefore, credit manufacturing overhead account for $40,275. b. Prepare journal entry to record transfer completed units from work in process to the finished goods warehouse in June. Account titles and Explanation Debit Credit Finished goods inventory $159,000 Work in process inventory $159,000 (To record transfer of 13,250 units completed units to finished) Table (2) Finished goods inventory is a current asset, and it is increased. Therefore, debit finished goods inventory account for $159,000. Work in process inventory is a current asset, and it is decreased. Therefore, credit work in process inventory account for $159,000. c. Prepare journal entries to record sale of 10,000 units manufactured during the period and related cost of goods sold. Account titles and Explanation Debit Credit Accounts receivable $250,000 Sales $250,000 (To record sales of 10,000 units @ $25 per unit) Table (3) Account receivable is a current asset, and it is increased...

17th Edition

ISBN: 9780078025778

Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello

Publisher: McGraw-Hill Education

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Chapter 18, Problem 3E

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Prepare journal entries of Industries S.

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← Week 1: Homework Question 3 of 4 8.75/10 The project is completed in 2025, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2025 total $16,000. The patent has an expected useful life of 5 years. Record the costs for 2025 in journal entry form. Also, record patent amortization (full year) in 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Research and Development Expense Cash (To record research and development costs) Patents Cash (To record legal and administrative costs) Amortization Expense Patents (To record one year's amortization expense) Debit 113000 16000 3200 Credit 113000 16000 3200

Chapter 18 Solutions

Financial & Managerial Accounting

Ch. 18 - Prob. 1STQ Ch. 18 - 2. Which of the following businesses would most...Ch. 18 - 3. Nut House manufactures and sells jars of peanut...Ch. 18 - 4. Indicate which of the following phrases...Ch. 18 - 5. A production cost report contains which of the...Ch. 18 - 1. Why would a company use multiple cost...Ch. 18 - 2. What factors should be taken into account in...Ch. 18 - 3. Rodeo Drive Jewelers makes custom jewelry for...Ch. 18 - 4. Describe at least two products or production...Ch. 18 - 5. What are the four significant parts of the...

Ch. 18 - 6. Taylor & Malone is a law firm. Would the...Ch. 18 - 7. Briefly explain the operation of process...Ch. 18 - 8. Some companies that use process costing simply...Ch. 18 - 9. Discuss how managers use information they...Ch. 18 - 10. Explain the term equivalent units. In a...Ch. 18 - 11. Identify various product characteristics that...Ch. 18 - 12. In a process costing system, what condition...Ch. 18 - 13. Why is the combination of direct labor and...Ch. 18 - 14. Why might the unit cost of those items started...Ch. 18 - 15. In a process costing system that uses a FIFO...Ch. 18 - BRIEF EXERCISE 18.1 Selecting Cost Accounting...Ch. 18 - BRIEF EXERCISE 18.2 Matching Cost Systems and...Ch. 18 - Prob. 3BE Ch. 18 - BRIEF EXERCISE 18.4 Journal Entries in Process...Ch. 18 - Prob. 5BE Ch. 18 - Prob. 6BE Ch. 18 - Prob. 7BE Ch. 18 - BRIEF EXERCISE 18.8 Determining Departmental...Ch. 18 - Prob. 9BE Ch. 18 - Prob. 10BE Ch. 18 - EXERCISE 18.1 Accounting Terminology Listed are...Ch. 18 - Prob. 2E Ch. 18 - Prob. 3E Ch. 18 - Prob. 4E Ch. 18 - EXERCISE 18.5 Computing Costs per Equivalent...Ch. 18 - EXERCISE 18.6 Process Costing with No Beginning...Ch. 18 - EXERCISE 18.7 Process Costing with No Beginning...Ch. 18 - EXERCISE 18.8 Process Costing with Beginning...Ch. 18 - EXERCISE 18.9 Process Costing with Beginning...Ch. 18 - Prob. 10E Ch. 18 - EXERCISE 18.11 Process Costing through Two...Ch. 18 - Prob. 12E Ch. 18 - EXERCISE 18.13 Assessing the Need for Process...Ch. 18 - EXERCISE 18.14 Interpreting Information from a...Ch. 18 - EXERCISE 18.15 Finding Missing Information for a...Ch. 18 - Prob. 1AP Ch. 18 - Prob. 2AP Ch. 18 - Prob. 3AP Ch. 18 - PROBLEM 18.4A Process Costing with No Beginning or...Ch. 18 - PROBLEM 18.5A Calculate Cost per Equivalent...Ch. 18 - PROBLEM 18.5A Calculate Cost per Equivalent...Ch. 18 - Prob. 7AP Ch. 18 - Prob. 8AP Ch. 18 - Prob. 1BP Ch. 18 - Prob. 2BP Ch. 18 - LO18-6 PROBLEM 18.3B Production Cost Report Refer...Ch. 18 - PROBLEM 18.4B Process Costing with No Beginning or...Ch. 18 - PROBLEM 18.5B Calculate Cost per Equivalent...Ch. 18 - PROBLEM 18.6B Production Cost Report Refer to the...Ch. 18 - Prob. 7BP Ch. 18 - Prob. 8BP Ch. 18 - Prob. 1CTC Ch. 18 - CASE 18.2 Interpreting and Using Process Costing...

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