Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 2, Problem 8P

1.

To determine

Journalize the given material transactions.

1.

Expert Solution
Check Mark

Explanation of Solution

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit.

Journalize the given material transactions.

S.noDescriptionPost RefDebit ($)Credit($)
a.Materials 58,000 
 Accounts payable  58,000
 (To record material purchase)   
     
b.Work-in-process 45,000 
 Factory overhead 8,000 
 Materials  53,000
 (To record direct material requisitioned to production)   
     
c.Materials 900 
 Work-in process  900
 (To record direct materials returned to storeroom)   
     
d.Accounts payable 1,500 
 Materials  1,500
 (To record materials returned to vendor)   
     
eAccounts payable 51,500 
 Cash  51,500
 (To record payment made to vendor)   

Table (1)

Description:

a.

  • Material is an asset account and it is increased. Therefore, debit the materials account.
  • Accounts payable is a liability account and it is increased. Therefore, credit the accounts payable account.

b.

  • Work-in-process is an asset account and it is increased. Therefore, debit the work-in-process account.
  • Factory overhead is an expense account and it is increased. Therefore, debit the factory overhead account.
  • Material is an asset account and it is decreased. Therefore, credit the materials account.

c.

  • Material is an asset account and it is increased. Therefore, debit the materials account.
  • Work-in-process is an asset account and it is decreased. Therefore, credit the work-in-process account.

d.

  • Accounts payable is a liability account and it is decreased. Therefore, debit the accounts payable account.
  • Material is an asset account and it is decreased. Therefore, credit the material account

e.

  • Accounts payable is a liability account and it is decreased. Therefore, debit the accounts payable account.
  • Cash is an asset account and it is decreased. Therefore, credit the material account

2.

To determine

Post journal entries to     T- accounts.

2.

Expert Solution
Check Mark

Explanation of Solution

Prepare T-account for Cash.

Cash
DateParticularsPost Ref.Debit ($)DateParticularsPost Ref.Credit($)
 Balance 64,250 (e)  51,500
    Balance c/d 12,750
      
   64,250   64,250

Table (2)

Prepare T-account for materials.

Materials
DateParticularsPost Ref.Debit ($)DateParticularsPost Ref.Credit($)
 Balance 23,500 (b) 53,000
 (a) 58,000 (d) 1,500
 (c) 900 Balance c/d 27,900
        
   82,400   82,400

Table (3)

Prepare T-account for accounts payable.

Accounts payable
DateParticularsPost Ref.Debit ($)DateParticularsPost Ref.Credit($)
 (d) 1,500 Balance 29,000
 (e) 51,500 (a) 58,000
 Balance c/d 34,000   
   87,000   87,000

Table (4)

Prepare T-account for Factory overhead.

Factory overhead
DateParticularsPost Ref.Debit ($)DateParticularsPost Ref.Credit($)
  (b)  8,000  

Table (5)

Prepare T-account for work in process.

Work in process
DateParticularsPost Ref.Debit ($)DateParticularsPost Ref.Credit($)
 Balance 31,000 (c) 900
 (b) 45,000 Balance c/d 75,100
   76,000   76,000

Table (6)

3a.

To determine

Report the cash balance as on September 30.

3a.

Expert Solution
Check Mark

Explanation of Solution

Cash balance during September 30 is $12,750.

3b.

To determine

Report the material balance as on September 30.

3b.

Expert Solution
Check Mark

Explanation of Solution

Material balance during September 30 is $27,900.

3c.

To determine

Report the accounts payable balance as on September 30.

3c.

Expert Solution
Check Mark

Explanation of Solution

Accounts payable balance during September 30 is $34,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 2 Solutions

Principles of Cost Accounting

Ch. 2 - Prob. 11QCh. 2 - Proper authorization is required before orders for...Ch. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Normally, a manufacturer maintains an accounting...Ch. 2 - Prob. 19QCh. 2 - Why do companies adopt the LIFO method of...Ch. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - Prob. 23QCh. 2 - Prob. 24QCh. 2 - Prob. 25QCh. 2 - Prob. 26QCh. 2 - Prob. 27QCh. 2 - Prob. 28QCh. 2 - A manufacturing process may produce a considerable...Ch. 2 - After a product is inspected, some units may be...Ch. 2 - Order Point Pershing, Inc. expects daily usage of...Ch. 2 - Economic order quantity; order cost; carrying cost...Ch. 2 - Economic order quantity; order cost; carrying cost...Ch. 2 - Journalizing materials requisitions Penrose...Ch. 2 - Recording materials transactions Prepare a journal...Ch. 2 - PurrChems raw materials records contained the...Ch. 2 - Using first-in, first-out perpetual inventory...Ch. 2 - LIFO costing Using last-in, first-out perpetual...Ch. 2 - Using the weighted average method of perpetual...Ch. 2 - Prob. 10ECh. 2 - Renfro, Inc. was franchised on January 1, 2016. At...Ch. 2 - Recording materials transactions Craig Products...Ch. 2 - Recording materials transactions Broadwell...Ch. 2 - JIT and cost control Matsui Industries produces...Ch. 2 - Kenkel, Ltd. uses backflush costing to account for...Ch. 2 - For E2-15, prepare any journal entries that would...Ch. 2 - Davis Co. uses backflush costing to account for...Ch. 2 - For E2-17, prepare any journal entries that would...Ch. 2 - A machine shop manufactures a stainless steel part...Ch. 2 - Spoiled work Roger Company manufactures tennis...Ch. 2 - Defective work Herbert Electronics manufactures an...Ch. 2 - Perry Co. predicts it will use 25,000 units of...Ch. 2 - Prob. 2PCh. 2 - Economic order quantity; tabular computation Lopez...Ch. 2 - In P2-3, assume that the company desires a safety...Ch. 2 - Inventory costing methods The purchases and issues...Ch. 2 - Inventory costing methods The following...Ch. 2 - Terrills Transmissions uses a job order cost...Ch. 2 - Prob. 8PCh. 2 - Tuscany Products, Inc. uses a job order cost...Ch. 2 - Prob. 10PCh. 2 - JIT and cost control Langray, Ltd. produces 50,000...Ch. 2 - Backflush costing Russell Corp. uses backflush...Ch. 2 - Webster Company uses backflush costing to account...Ch. 2 - An examination of Buckhorn Fabricators records...Ch. 2 - One of the tennis rackets that Ace Sporting Goods...Ch. 2 - Lloyd Industries manufactures electrical equipment...Ch. 2 - Review Problem for Chapters 1 and 2 UltraLift...Ch. 2 - Financial and Nonfinancial Aspects of Changing to...Ch. 2 - Prob. 2MC
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Text book image
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Text book image
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Text book image
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Text book image
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY