If You Company had the following account balances as of August 1, 2018: Raw Material (direct & indirect) inventory $20,300 Work in Process Inventory 7,000 Finished Goods Inventory 18,000 Purchased $164,000 of raw material on account. Issued $180,000 of raw material of which $134,000 was direct to the product. Accrued factory payroll of $88,000; $62,000 was for direct labor and the rest was for supervisors' salaries. Accrued utility cost of $7,000; of these costs $1600 were fixed. Accrued property taxes on the factory in the amount of $2,000. Had prepaid insurance of $1,600 on factory equipment that expired in August. Had straight line depreciation on factory equipment of $40,000. Applied actual overhead to Work Process Inventory. Transferred goods costing $320,000 to Finished Goods Inventory. Had total sales on account of $70,000. Had cost of goods sold of $330,000. Had selling and administrative costs of $280,000 (credit Various accounts). Had ending work in progress inventory of $5600. Required: a.Journalize the transactions for August. b.Post transactions to T-accounts for Raw material Inventory, Work in process Inventory, Finished Goods Inventory, and Cost Of goods Solds. C.Prepare a schedule of cost of goods manufactured for August using actual costing. d.Prepare an income statement, including a detailed schedule of cost of goods sold.
If You Company had the following account balances as of August 1, 2018: Raw Material (direct & indirect) inventory $20,300 Work in Process Inventory 7,000 Finished Goods Inventory 18,000 Purchased $164,000 of raw material on account. Issued $180,000 of raw material of which $134,000 was direct to the product. Accrued factory payroll of $88,000; $62,000 was for direct labor and the rest was for supervisors' salaries. Accrued utility cost of $7,000; of these costs $1600 were fixed. Accrued property taxes on the factory in the amount of $2,000. Had prepaid insurance of $1,600 on factory equipment that expired in August. Had straight line depreciation on factory equipment of $40,000. Applied actual overhead to Work Process Inventory. Transferred goods costing $320,000 to Finished Goods Inventory. Had total sales on account of $70,000. Had cost of goods sold of $330,000. Had selling and administrative costs of $280,000 (credit Various accounts). Had ending work in progress inventory of $5600. Required: a.Journalize the transactions for August. b.Post transactions to T-accounts for Raw material Inventory, Work in process Inventory, Finished Goods Inventory, and Cost Of goods Solds. C.Prepare a schedule of cost of goods manufactured for August using actual costing. d.Prepare an income statement, including a detailed schedule of cost of goods sold.
Chapter5: Process Costing
Section: Chapter Questions
Problem 4PA: During March, the following costs were charged to the manufacturing department: $14886 for...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 13 images
Knowledge Booster
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.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning