Homework Help is Here – Start Your Trial Now!
Business
Accounting
Madelon Lee Company's general ledger included the following items related to its manufacturing activities for 2019. The accounts have been adjusted, but have not yet been closed: P 84,600 99,360 311,400 450,000 194,220 Raw Materials Inventory Work in Process Inventory Purchases-Raw Materials Direct Labor Indirect Labor Factory Utilities Repairs and Maintenance-Factory Equipment Rent Expense-Factory Building Property Taxes-Factory Site Factory Insurance Expense Factory Supplies Expense Depreciation Expense-Factory Equipment 109,440 30,060 84,600 19,260 16,020 34,920 82,800 13,680 Amortization of Patents In addition, the ending inventory of raw materials is known to be P91,080. The ending inventory of Work in Process is not known, but it is known that the company makes a single product and 4,500 units of goods were in process on Dec. 31, 2019. Each unit contained an estimated P18 of direct materials and had P7.50 of direct labor cost assigned to it. Required: 1. Calculate the overhead rate based on the relationship between total manufacturing overhead cost and total direct labor cost. Then, determine the cost of the ending Work in Process inventory. 2. Prepare the statement of cost goods manufactured for 2019. 3. Prepare the journal entries to close the manufacturing accounts to manufacturing summary and to close the manufacturing summary account.

Madelon Lee Company's general ledger included the following items related to its manufacturing activities for 2019. The accounts have been adjusted, but have not yet been closed: P 84,600 99,360 311,400 450,000 194,220 Raw Materials Inventory Work in Process Inventory Purchases-Raw Materials Direct Labor Indirect Labor Factory Utilities Repairs and Maintenance-Factory Equipment Rent Expense-Factory Building Property Taxes-Factory Site Factory Insurance Expense Factory Supplies Expense Depreciation Expense-Factory Equipment 109,440 30,060 84,600 19,260 16,020 34,920 82,800 13,680 Amortization of Patents In addition, the ending inventory of raw materials is known to be P91,080. The ending inventory of Work in Process is not known, but it is known that the company makes a single product and 4,500 units of goods were in process on Dec. 31, 2019. Each unit contained an estimated P18 of direct materials and had P7.50 of direct labor cost assigned to it. Required: 1. Calculate the overhead rate based on the relationship between total manufacturing overhead cost and total direct labor cost. Then, determine the cost of the ending Work in Process inventory. 2. Prepare the statement of cost goods manufactured for 2019. 3. Prepare the journal entries to close the manufacturing accounts to manufacturing summary and to close the manufacturing summary account.

Principles of Cost Accounting
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 14P: An examination of Buckhorn Fabricators records reveals the following transactions: a. On December...
See similar textbooks
icon
Related questions
Question
100%

please answer 1,2&3. thank you!

Madelon Lee Company's general ledger included the following items related to its manufacturing activities for 2019. The accounts have been adjusted, but have not yet been closed: Raw Materials Inventory P 84,600 Work in Process Inventory 99,360 Purchases-Raw Materials 311,400 Direct Labor 450,000 Indirect Labor 194,220 Factory Utilities Repairs and Maintenance-Factory Equipment Rent Expense-Factory Building Property Taxes-Factory Site Factory Insurance Expense Factory Supplies Expense Depreciation Expense-Factory Equipment 109,440 30,060 84,600 19,260 16,020 34,920 82,800 13,680 Amortization of Patents In addition, the ending inventory of raw materials is known to be P91,080. The ending inventory of Work in Process is not known, but it is known that the company makes a single product and 4,500 units of goods were in process on Dec. 31, 2019. Each unit contained an estimated P18 of direct materials and had P7.50 of direct labor cost assigned to it. Required: 1. Calculate the overhead rate based on the relationship between total manufacturing overhead cost and total direct labor cost. Then, determine the cost of the ending Work in Process inventory. 2. Prepare the statement of cost goods manufactured for 2019. 3. Prepare the journal entries to close the manufacturing accounts to manufacturing summary and to close the manufacturing summary account.
Transcribed Image Text:Madelon Lee Company's general ledger included the following items related to its manufacturing activities for 2019. The accounts have been adjusted, but have not yet been closed: Raw Materials Inventory P 84,600 Work in Process Inventory 99,360 Purchases-Raw Materials 311,400 Direct Labor 450,000 Indirect Labor 194,220 Factory Utilities Repairs and Maintenance-Factory Equipment Rent Expense-Factory Building Property Taxes-Factory Site Factory Insurance Expense Factory Supplies Expense Depreciation Expense-Factory Equipment 109,440 30,060 84,600 19,260 16,020 34,920 82,800 13,680 Amortization of Patents In addition, the ending inventory of raw materials is known to be P91,080. The ending inventory of Work in Process is not known, but it is known that the company makes a single product and 4,500 units of goods were in process on Dec. 31, 2019. Each unit contained an estimated P18 of direct materials and had P7.50 of direct labor cost assigned to it. Required: 1. Calculate the overhead rate based on the relationship between total manufacturing overhead cost and total direct labor cost. Then, determine the cost of the ending Work in Process inventory. 2. Prepare the statement of cost goods manufactured for 2019. 3. Prepare the journal entries to close the manufacturing accounts to manufacturing summary and to close the manufacturing summary account.
Expert Solution
steps

Step by step

Solved in 2 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Planning
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
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS