Loveland Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation. 1. Acquired $2,400 cash from the issue of common stock. 2. Paid $720 cash for direct raw materials. 3. Transferred $480 of direct raw materials to work in process. 4. Paid production employees $720 cash. 5. Paid $360 cash for manufacturing overhead costs. 6. Applied $294 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,200. 8. Sold products that cost $960 for $1,680 cash. 9. Paid $480 cash for selling and administrative expenses. o. Made a $60 cash distribution to the owners. 1. Closed the Manufacturing Overhead account. Required a. Record these events in a horizontal statements model. The first event is shown as an example. Balance Sheet Income Statement Assets Equity Event Net No. Cash + MOH + Raw M. + WIP + F. Goods = C. Stk. + Ret. Ear. Rev. Exp. = Inc. 1. 2,400 + NA + NA + NA NA 2,400 + NA NA NA NA b. Prepare a schedule of cost of goods manufactured and sold.

Loveland Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation. 1. Acquired $2,400 cash from the issue of common stock. 2. Paid $720 cash for direct raw materials. 3. Transferred $480 of direct raw materials to work in process. 4. Paid production employees $720 cash. 5. Paid $360 cash for manufacturing overhead costs. 6. Applied $294 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,200. 8. Sold products that cost $960 for $1,680 cash. 9. Paid $480 cash for selling and administrative expenses. o. Made a $60 cash distribution to the owners. 1. Closed the Manufacturing Overhead account. Required a. Record these events in a horizontal statements model. The first event is shown as an example. Balance Sheet Income Statement Assets Equity Event Net No. Cash + MOH + Raw M. + WIP + F. Goods = C. Stk. + Ret. Ear. Rev. Exp. = Inc. 1. 2,400 + NA + NA + NA NA 2,400 + NA NA NA NA b. Prepare a schedule of cost of goods manufactured and sold.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PA: The following data summarize the operations during the year. Prepare a journal entry for each...

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Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
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.
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 data summarize the operations during the year. Prepare a journal entry for each transaction. Purchase of raw materials on account: $3000 Raw materials used by Job 1: $500 Raw materials used as indirect materials: $100 Direct labor for Job 1: $300 Indirect labor incurred: $50 Factory utilities incurred on account: $700 Adjusting entry for factory depreciation: $250 Manufacturing overhead applied as percent of direct labor: 200% Job 1 is transferred to finished goods Job 1 is sold: $3,000 Manufacturing overhead is over applied: $100
The post-closing trial balance of Custer Products, Inc. on April 30 is reproduced as follows: During May, the following transactions took place: a. Purchased raw materials at a cost of 45,000 and general factory supplies at a cost of 13,000 on account (recorded materials and supplies in the materials account). b. Issued raw materials to be used in production, costing 47,000, and miscellaneous factory supplies costing 15,000. c. Recorded the payroll and the payments to employees as follows: factory wages (including 12,000 indirect labor), 41,000; and selling and administrative salaries, 7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.) d. Distributed the payroll in (c). e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. f. Incurred other expenses totaling 11,000. One-fourth of this amount is allocable to the office function. g. Transferred total factory overhead costs to Work in Process. h. Completed and transferred goods with a total cost of 91,000 to the finished goods storeroom. i. Sold goods costing 188,000 for 362,000. (Assume that all sales were made on account.) j. Collected accounts receivable in the amount of 345,000. k. Paid accounts payable totaling 158,000. Required: 1. Prepare journal entries to record the transactions. 2. Set up T-accounts. Post the beginning trial balance and the journal entries prepared in (1) to the accounts and determine the balances in the accounts on May 31. 3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
A company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?
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
Rooney Construction Company began operations on January 1, Year 1, when it acquired $10,000 cash from the issuance of common stock. During the year, Rooney purchased $2,700 of direct raw materials and used $2,500 of the direct materials. There were 106 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $4.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the following allocations of costs to each building. Direct Materials Direct Labor Hours Job 1 $ 600 28 Job 2 1,100 46 Job 3 800 32 The company paid $77 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $341. Rooney completed Jobs 1 and 2 and sold Job 1 for $1,586 cash. The company incurred $150 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold.…
The Juarez Corporation incurred the following transactions during its first year of operations. (Assume all transactions involve cash). 1) Acquired $1,800 of capital from the owners. 2) Purchased $380 of direct raw materials. 3) Used $280 of these direct raw materials in the production process. 4) Paid production workers $480 cash. 5) Paid $280 for manufacturing overhead (applied and actual overhead are the same). 6) Started and completed 260 units of inventory. 7) Sold 130 units at a price of $6 each. 8) Paid $120 for selling and administrative expenses. The amount of cost of goods manufactured would be:
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
Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Materials Used Direct Labor Job 1 $ 1,100 $ 2,100 Job 2 2,000 3,700 Job 3 3,400 2,100 Total $ 6,500 $ 7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $11,070 cash. Zachary paid $700 for selling and administrative expenses. Actual factory overhead was $6,130. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.