Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $2,500 cash from the issue of common stock. 2. Paid $580 cash for direct raw materials. 3. Transferred $410 of direct raw materials to work in process. 4. Paid production employees $640 cash. 5. Paid $380 cash for manufacturing overhead costs. 6. Applied $230 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,050. 8. Sold products that cost $890 for $1,640 cash. 9. Paid $330 cash for selling and administrative expenses. 10. Made a $80 cash distribution to the owners. 11. Closed the Manufacturing Overhead account. Required: a. Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Manufacturing Overhead Work in Finished Goods Common Event Raw Retained Net Cash Revenue Expense %3D Stock No. Materials Process Earnings Income $ 2,500 + $2,500 + 1. 2. 3. %3D 4. %3D 5. %3D 6. 7. %3D 8a. %3D 8b. 9. %3D 10. %3D 11. %3D Total II IL|| II + + +|+ + + + + + II |+ + | + + + + | + +|+ +| ++ + + + + ++ + + + + + +| + + +

Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $2,500 cash from the issue of common stock. 2. Paid $580 cash for direct raw materials. 3. Transferred $410 of direct raw materials to work in process. 4. Paid production employees $640 cash. 5. Paid $380 cash for manufacturing overhead costs. 6. Applied $230 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,050. 8. Sold products that cost $890 for $1,640 cash. 9. Paid $330 cash for selling and administrative expenses. 10. Made a $80 cash distribution to the owners. 11. Closed the Manufacturing Overhead account. Required: a. Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Manufacturing Overhead Work in Finished Goods Common Event Raw Retained Net Cash Revenue Expense %3D Stock No. Materials Process Earnings Income $ 2,500 + $2,500 + 1. 2. 3. %3D 4. %3D 5. %3D 6. 7. %3D 8a. %3D 8b. 9. %3D 10. %3D 11. %3D Total II IL|| II + + +|+ + + + + + II |+ + | + + + + | + +|+ +| ++ + + + + ++ + + + + + +| + + +

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 14E: The following events took place for Rushmore Biking Inc. during February, the first month of...

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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
Financial statements of a manufacturing firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased 250,000 of materials. b. Used 180,000 of direct materials in production. c. Incurred 450,000 of direct labor wages. d. Incurred 180,000 of factory overhead. e. Transferred 760,000 of work in process to finished goods. f. Sold goods for 1,200,000. g. Sold goods with a cost of 675,000 h. Incurred 215,000 of selling expense i. Incurred 125,000 of administrative expense Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. b. Determine the inventory balances at the end of the first month of operations.
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased 480,000 of materials. Used 434,500 of direct materials in production. Incurred 125,000 of direct labor wages. Applied factory overhead at a rate of 40% of direct labor cost. Transferred 578,000 of work in process to finished goods. Sold goods with a cost of 550,000. Revenues earned by selling bikes, 910,000. Incurred 185,000 of selling expenses. Incurred 90,000 of administrative expenses. a. Prepare the income statement for Rushmore Biking for the month ending February 28. b. Determine the inventory balances on February 28, the end of the first month of operations.
Loveland Manufacturing Company was started on January 1, 2018. The company was affected by the following events during its first year of operation: Acquired $2,400 cash from the issue of common stock. Paid $720 cash for direct raw materials. Transferred $480 of direct raw materials to work in process. Paid production employees $720 cash. Paid $360 cash for manufacturing overhead costs. Applied $294 of manufacturing overhead costs to work in process. Completed work on products that cost $1,200. Sold products that cost $960 for $1,680 cash. Paid $480 cash for selling and administrative expenses. Made a $60 cash distribution to the owners. Closed the Manufacturing Overhead account. Record these events in a horizontal statements model. The first event is shown as an example. Prepare a schedule of cost of goods manufactured and sold
The Dotson Company began business on January 1, 2016. During the year, the company paid $120,000 for materials used in the production process and $300,000 in wages for the production workers. The rent and utilities of the manufacturing plant totaled $80,000. Selling costs amounted to $150,000. The company made 250,000 units and sold 210,000 units for $5 each. What was the company’s production cost per unit?
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Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. $75,000 in raw materials were purchased for cash. $71,800 in raw materials were used in production. Of this amount, $65,400 was for direct materials and the remainder was for indirect materials. Total labor wages of $152,100 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $126,200 were incurred and paid. Manufacturing overhead of $128,700 was applied to production using the company’s predetermined overhead rate. All of the jobs in process at the end of the month were completed. All of the completed jobs were shipped to customers. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: Post the above transactions to T-accounts. Determine the adjusted cost of goods sold…
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. $94,000 in raw materials were purchased for cash. $89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $143,000 were incurred and paid. Manufacturing overhead of $152,000 was applied to production using the company’s predetermined overhead rate. All of the jobs in process at the end of the month were completed. All of the completed jobs were shipped to customers. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods sold for…
Can I please get help and an explaination on this warmup? Mustafa Manufacturing Company began operations on January 1. During the year, it started and completed 3,000 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: Raw materials purchased and used—$6,200. Wages of production workers—$7,400. Salaries of administrative and sales personnel—$3,000. Depreciation on manufacturing equipment—$4,400. Depreciation on administrative equipment—$2,200. Mustafa sold 2,400 units of product. Required Determine the total product cost for the year. Determine the total cost of the ending inventory. Determine the total of cost of goods sold. Total Product Cost Total Cost of ending inventory Total cost of goods sold
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. $75,300 in raw materials were purchased for cash. $72,900 in raw materials were used in production. Of this amount, $65,200 was for direct materials and the remainder was for indirect materials. Total labor wages of $150,100 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $126,200 were incurred and paid. Manufacturing overhead of $128,000 was applied to production using the company’s predetermined overhead rate. All of the jobs in process at the end of the month were completed. All of the completed jobs were shipped to customers. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods…
The following data summarizes in part the results of operations for 2021 of Diamond Company. Of the total cost of goods manufactured for 2021, 38% was for materials used, 30% for direct labor, and 32% for manufacturing overhead. During 2021, the company paid 90% of the materials purchased, leaving P293,000 of unpaid invoices for materials at year end.The company commenced 2021 operations with materials inventory of P421,000. All materials were purchased FOB company’s plant. The company disbursed P2,101,500 for direct labor during 2021. As of December 31, 2021, the accrued liability for direct labor amounted to P144,000, which was twice as much as last year’s accrual. The inventory of finished goods on December 31, 2021, was 10% of the cost of the units finished during the year, and goods in process on that date were one-half the finished goods inventory. This year’s finished goods inventory was 150% of last year. There are no in process last year. The manufacturing overhead, except for…