I'm so confused - i've forgotten some of this stuff.. especially B. CHAPTER 27Applying Your KnowledPROBLEM 27-68 (continued)Woods CompanyTrial BalanceDecember 31, 204.ACCOUNT TITLETRIAL BALANCE6.CashDEBITCREDITGovernment Notes28,400.008Interest Receivable6,000.009.Accounts Receivable10Allowance for Doubtful Accounts32,800.0011Finished Goods Inventory610.0012Work in Process Inventory26,100.0013Materials Inventory10,200.0014Estimated Returns Inventory9,300.0015 Office Supplies65.0016 Factory Supplies4,200.0017Land8,600.001880,000.00Factory Building19 Accumulated Depreciation-Factory Building20 Factory Equipment160,000.0030,000.0060,000.0021Accumulated Depreciation-Factory EquipmentAccounts Payable20,000.002216,000.0023Customer Refunds Payable125.0024 Income Tax Payable25 Interest Payable26 Bonds Payable100,000.0027 Capital StockPaid-in Capital in Excess of ParRetained Earnings60,000.002820,000.0029111,400.0030Cash Dividends40,000.00404,680.0031Sales32Sales Returns and Allowances5,040.00500.0033Interest Revenue81,590.0092,300.0034 Factory Overhead3536198,300.0037Cost of Goods Sold78,700.0038 Wages Expense39 Office Supplies ExpenseBad Debt Expense404,900.00Utilities Expense-Office9,000.0041Interest Expense12,420.0042Income Tax Expense855,615.00855,615.00434445 Dec. 31 Interest ReceivableInterest Revenue23087531 Interest ExpenseInterest PayableWork in Process Inventory8754,250314,250Factory OverheadSERIES B PROBLEMSSPREADSHEET, ADJUSTING ENTRIES, AND FINANCIAL STATEMENTS WCompany's trial balance columns from its spreadsheet are shown on the nevoodsData for adjusting the accounts are as follows:(a) Factory overhead to be applied to work in process ending inventory(b) Estimate of this year's sales that will be returned next year(c) Cost of goods expected to be returned(d) Interest receivable(e) Interest payable(f) Estimate of uncollectible accounts, based on an aging$ 4,3001,010490100700of4,110accounts receivable3,200(g) Office supplies consumed(h) Factory supplies consumed(i) Factory building depreciation(j) Factory equipment depreciation(k) Underapplied factory overhead(1) Provision for corporate income taxes(m) Physical counts of the inventories agreed with the amounts in the books6,70010,0006,0007,6908,100Additional information needed to prepare the financial statements is as follows:Beginning inventories:Finished goods, January 1Work in process, January 1Materials inventory, January 1Materials purchases for theDirect labor$ 22,30012,4007,90018,70090,300104,290yearActual factory overheadAssume that all materials inventory items are direct materials.REQUIRED1. Prepare a spreadsheet.2. Prepare the following financial statements and schedule:(a) income statement(b) schedule of cost of goods manufactured(c) statement of retained earnings(d) balance sheet

REQUIRED 1. Prepare a spreadsheet. 2. Prepare the following financial statements and schedule: (a) income statement (b) schedule of cost of goods manufactured (c) statement of retained earnings (d) balance sheet

REQUIRED 1. Prepare a spreadsheet. 2. Prepare the following financial statements and schedule: (a) income statement (b) schedule of cost of goods manufactured (c) statement of retained earnings (d) balance sheet

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 7P: Selected account balances and transactions of Titan Foundry Inc. follow: May Transactions: a....

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Selected account balances and transactions of Titan Foundry Inc. follow: May Transactions: a. Purchased raw materials and factory supplies on account at costs of 45,000 and 10,000, respectively. (One inventory account is maintained.) b. Incurred wages during the month of 65,000 (15,000 was for indirect labor). c. Incurred factory overhead costs in the amount of 42,000 on account. d. Made adjusting entries to record 10,000 of factory overhead for items such as depreciation (credit Various Credits). Factory overhead was closed to Work in Process. Completed jobs were transferred to Finished Goods, and the cost of jobs sold was charged to Cost of Goods Sold. Required: Prepare journal entries for the following: 1. The purchase of raw materials and factory supplies. 2. The issuance of raw materials and supplies into production. (Hint: Be certain to consider the beginning and ending balances of raw materials and supplies as well as the amount of the purchases.) 3. The recording of the payroll. 4. The distribution of the payroll. 5. The payment of the payroll. 6. The recording of factory overhead incurred. 7. The adjusting entry for factory overhead. 8. The entry to transfer factory overhead costs to Work in Process. 9. The entry to transfer the cost of completed work to Finished Goods. (Hint: Be sure to consider the beginning and ending balances of Work in Process as well as the manufacturing costs added to Work in Process this period.) 10. The entry to record the cost of goods sold. (Hint: Be sure to consider the beginning and ending balances of Finished Goods as well as the cost of the goods finished during the month.)
Beginning inventory and direct material cost added during the month total $55,000. What is the value of the ending work in process inventory if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units were in ending inventory? $1,000 $5,000 $50,000 $55,000
Inventory costing methods The purchases and issues of rubber gaskets (Materials Ledger #11216) as shown in the records of Hillsdale Corp. for November follow: Required: 1. Complete a materials ledger account similar to Figure 2-10 (the On Order columns should be omitted) for each of the following inventory costing methods, using a perpetual inventory system: a. FIFO b. LIFO c. Weighted average (carrying unit prices to five decimal places) 2. For each method, prepare a schedule that shows the total cost of materials transferred to Work in Process and the cost of the ending inventory. 3. If prices continue to increase, would you favor adopting the FIFO or the LIFO method? Explain. 4. When prices continue to rise, what is the effect of FIFO versus LIFO on the inventory balance for materials reported in the balance sheet? Discuss.
JOURNAL ENTRIES FOR FACTORY OVERHEAD Huang Company manufactures toys. It keeps a factory overhead account where actual factory overhead costs are recorded as a debit, and factory overhead applied is recorded as a credit. At the end of the month, under- or overapplied factory overhead is calculated and transferred to the cost of goods sold account. For the month of January, Huang had the following overhead transactions. Make appropriate general journal entries to record factory overhead and factory overhead applied, and to close the under- or overapplied factory overhead to the cost of goods sold account. Jan.1 Paid rent, 1,000. 10 Paid electricity bill, 250. 15 Paid repair expense, 1,500. 21 Vacation pay for machine operator, 500 (Wages Payable). 31 Depreciation expense for the month, 450. 31 Factory overhead applied was 3,500.
Statement of cost of goods manufactured; income statement; balance sheet The adjusted trial balance for Rochester Electronics, Inc. on November 30, the end of its first month of operation, is as follows: The general ledger reveals the following additional data: a. There were no beginning inventories. b. Materials purchases during the period were 33,000. c. Direct labor cost was 18,500. d. Factory overhead costs were as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of November. 2. Prepare an income statement for the month of November. (Hint: Check to be sure that your figure for Cost of Goods Sold equals the amount given in the trial balance.) 3. Prepare a balance sheet as of November 30. (Hint: Do not forget Retained Earnings.)
32 S1: When raw materials are requisitioned and placed into production, the Raw Materials Inventory account is debited.S2: Over-applied overhead that is material in amount is closed to the Cost of Sales account at year-end. Group of answer choices False; False True; True True; False False; True
S1: When raw materials are requisitioned and placed into production, the Raw Materials Inventory account is debited.S2: Over-applied overhead that is material in amount is closed to the Cost of Sales account at year-end. Group of answer choices False; True False; False True; True True; False
Complete the missing amounts and labels in the T-accounts. Work-in-Process Inventory--Cutting Balance, May 1 0 (a) Transfer out to ? Direct Materials 57,000 Direct Labor 5,000 Manufacturing Overhead 39,000 Balance, May 31 16,000 Work-in-Process Inventory ---Finishing Balance, May 1 11,000 80,000 Transfer out to ? Transfer in from (b) Direct Materials 21,000 Direct Labor (c) Manufacturing Overhead 18,000 Balance, May 31 68,000 Work-in-Process Inventory---Packaging Balance, May 1 4,000 (d) Transfer out to ? Transfer in from (e) Direct Materials 1,000 Direct Labor 9,000 Manufacturing Overhead 14,000 Balance, May 31 8,000 Finished Goods Inventory Balance, May 1 0 (f) Transfer out to ? Transfer in from ? (g) Balance, May 31 2,000…
Selected information from the Iowa Instruments accounting records for April follows: Materials Inventory Debit Credit BB (4/1) 26,800 210,800 175,800 Work-in-Process Inventory Debit Credit Labor 95,400 EB (4/30) 92,800 Finished Goods Inventory Debit Credit BB (4/1) 88,800 288,200 273,800 Cost of Goods Sold Debit Credit 5,300 Manufacturing Overhead Control Debit Credit 79,300 79,300 Applied Manufacturing Overhead Debit Credit 89,040 83,740 5,300 Additional information for April follows: The labor wage rate was $30 per hour. During the month, sales revenue was $320,900, and selling and administrative costs were $82,000. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. Customer returns are discarded and not resold. Required: What was…
T2-7 Assign costs to completed units and ending Work in Process Inventory (LO 4) Monk, Inc. reported the following results for the month of November. Units Materials Conversion Work in Process Beginning inventory ? $ 5,900 $15,000 Added to production ? 47,300 65,000 Completed and transferred out ? ? ? Ending inventory 40,000 60% complete 40% complete Cost per equivalent unit $0.40 $0.64 Questions a.How many units were completed and transferred out of Work in Process Inventory? b.What cost should be assigned to the units transferred out of Work in Process Inventory? c.What cost should be assigned to the ending Work in Process Inventory?
17. The Cookie Inc. has the following information for the month of March. Prepare a (a)schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c)prepare only the inventory of the balance sheet.Purchases $85,000Materials inventory, March 1 6,000Materials inventory, March 31 7,000Direct labor 25,000Factory overhead 34,000Work in process, March 1 17,000Work in process, March 31 18,500Finished goods inventory, March 1 21,000Finished goods inventory, March 31 23,000Sales 235,000Sales and administrative expenses 78,000
Problem 1.b.: Computation of Costs of Goods Manufactured (COGM).Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.Work-in-process Inventory (WIP)Accounts $ Accounts $Beginning balance $19,500 COGM ?Direct materials (DM) $76,200Direct labor (DL) $120,000MOH allocated $72,000Ending Balance $24,300Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.Solution: Formula:Beginning WIP+ TMC (total manufacturing costs) for the periodDM usedDL incurredMOH allocatedTMC in WIP- Ending WIP= COGM