Coronado Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Coronado uses a job order costing system. On January 1, the T-accounts for some of Coronado’s primary balance sheet accounts were as follows: Raw Materials Inventory Work in Process Inventory 1/1 59,400 1/1 25,500 Finished Goods Inventory Cash 1/1 38,600 1/1 37,200 Accounts Receivable Accounts Payable 1/1 47,300 1/1 41,900 During the year, the following events occurred: 1. Coronado purchased raw materials costing $118,000 on account. 2. Coronado used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Coronado maintains a single Raw Materials Inventory account.) 3. Coronado used 31,900 hours of direct labor. The company’s average direct labor rate was $11 per hour (credit Wages Payable). 4. The company’s indirect labor cost was $168,000 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $97,400. 6. Coronado applied $316,800 in manufacturing overhead. 7. The company completed production of goods costing $795,400. 8. The company’s Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead. 9. Sales revenue was $1,040,000 (all sales were made on account). 10. Coronado collected $803,200 from customers. 11. The company paid accounts payable of $201,300. 12. At year-end, all wages earned during the year had been paid. Record the transactions above in the appropriate T-accounts and calculate ending balances. (Post entries in order presented in the problem.)
Coronado Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Coronado uses a job order costing system. On January 1, the T-accounts for some of Coronado’s primary balance sheet accounts were as follows: Raw Materials Inventory Work in Process Inventory 1/1 59,400 1/1 25,500 Finished Goods Inventory Cash 1/1 38,600 1/1 37,200 Accounts Receivable Accounts Payable 1/1 47,300 1/1 41,900 During the year, the following events occurred: 1. Coronado purchased raw materials costing $118,000 on account. 2. Coronado used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Coronado maintains a single Raw Materials Inventory account.) 3. Coronado used 31,900 hours of direct labor. The company’s average direct labor rate was $11 per hour (credit Wages Payable). 4. The company’s indirect labor cost was $168,000 (credit Wages Payable). 5. Other manufacturing overhead costs the company incurred on account totaled $97,400. 6. Coronado applied $316,800 in manufacturing overhead. 7. The company completed production of goods costing $795,400. 8. The company’s Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead. 9. Sales revenue was $1,040,000 (all sales were made on account). 10. Coronado collected $803,200 from customers. 11. The company paid accounts payable of $201,300. 12. At year-end, all wages earned during the year had been paid. Record the transactions above in the appropriate T-accounts and calculate ending balances. (Post entries in order presented in the problem.)
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...
Related questions
Question
Coronado Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Coronado uses a
Raw Materials Inventory
|
Work in Process Inventory
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1/1
|
59,400 |
1/1
|
25,500 | |||||||||||
Finished Goods Inventory
|
Cash
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1/1
|
38,600 |
1/1
|
37,200 | |||||||||||
|
Accounts Payable
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1/1
|
47,300 |
1/1
|
41,900 | |||||||||||
During the year, the following events occurred:
1. | Coronado purchased raw materials costing $118,000 on account. |
2. | Coronado used $149,300 of raw materials in production. Of these, 80% were classified as direct materials and 20% as indirect materials. (Coronado maintains a single Raw Materials Inventory account.) |
3. | Coronado used 31,900 hours of direct labor. The company’s average direct labor rate was $11 per hour (credit Wages Payable). |
4. | The company’s indirect labor cost was $168,000 (credit Wages Payable). |
5. | Other |
6. | Coronado applied $316,800 in manufacturing overhead. |
7. | The company completed production of goods costing $795,400. |
8. | The company’s Cost of Goods Sold balance was $801,300 before adjusting for over- or underapplied overhead. |
9. | Sales revenue was $1,040,000 (all sales were made on account). |
10. | Coronado collected $803,200 from customers. |
11. | The company paid accounts payable of $201,300. |
12. |
At year-end, all wages earned during the year had been paid.
|
Record the transactions above in the appropriate T-accounts and calculate ending balances. (
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning