Chapter 19, Problem E19.26E

To determine

Concept Introduction:

Cost Records: Cost records are the data showing the amount incurred for manufacturing the product or providing the services. The company usually maintain their cost records as integrated system of accounting. In integrated system the cost and financial information are maintained in same set of data.

The Following Journal Entries are made for cost Records:

Particulars	Amount (In $) Debit	Amount(In $) Credit
-For Purchase of Material	xxxxx
Material Control A/c………………..Dr.		xxxxx
To Cash/Accounts Payable A/c
-For Issue of Material for Production	xxxxx
Work in Process Inventory A/c………..Dr.		Xxxx
To Material Control A/c
-For issue of Material for indirect use	Xxxxx
Manufacturing Overhaed A/c………….Dr.		xxxx
To Material Control A/c
-For Amount paid towards Wages	xxxx
Wages Control A/c……………Dr.		xxxx
To Cash A/c/Wages Payable A/c
-For utilisation of Labor towards production	Xxxxx
Work in Process Inventory A/c………..Dr.		Xxxx
To Wages Control A/c
-For utilisation of labor for indirect use	Xxxxx
Manufacturing Overhead A/c……………Dr.		Xxxxx
To Wages Control A/c
-For Charging Actual Overhead Cost	Xxxxx
Manufacturing Overhead A/c………Dr.		Xxxxx
To Deprecaition A/c To Overhead Expense A/c
-For Allocating Overhead for production	Xxxx
Work in Process Inventory A/c………….Dr.		Xxxxx
To Manufacturing Overhead A/c
-For Adjsuting Over Allocation of Overhead	Xxxx
Manufacturing Overhead A/c…………Dr.		xxxxx
To Cost of Goods Sold A/c
-For Adjusting Under Allocation of Overhead	xxxx
Cost of Goods Sold A/c………………Dr.		xxxx
To Manufacturing Overhead A/c

Requirement 1

To Determine

1. The amount missing in the Cost Records of Company.

a. Amount in credit side of Raw Material Inventory Account

b. Amount in Debit Side of Work in Process Inventory Account

c. Amount in Debit side of Finished Goods Inventory Account

d. Amount in credit side of finished goods inventory account

e. Amount in credit side of wages payable account

f. Amount in credit side of Manufacturing Overhead Account

g. Amount in Debit side of Cost of Goods Sold Account