S. Income statement; cost of goods sold statement; faciory overhead anaiysis. October 1, the accountant of Columbus Company prepared a trial balance from wiic te following accounts were extracted: Finished Goods (2,800 units). Work in Process (1,200 units). $ 9,800 4,070 40,700 48,000 Materials and Supplies.. Buildings.. Accumulated Depreciation-Buildings. Machinery and Equipmen.. Accumulated Depreciation-Machinery and Equipment. Office Equipment... Accumulated Depreciation-Office Equipment. Accrued Payroll.. $ 6,000 96,000 37,500 3,200 1,000 650 The following transactions and other data have been made available for October: Purchased materials and supples. Pald factory overhead.. Paid markeling expenses.. Paid administrative expenses. Requisitions for: Direct materials. $ 24,800 20,100 25,050 19,700 29,800 3,950 Indirect materials.. Depreciation: Building, 5% (75% to manufacturing, 15% to marketing, and 10% to administrative expenses) Machinery and equipment, 10% Office equipment, 15% (40% to marketing and 60% to administrative expenses) Sales (20,700 units). Sales retums and allowances. Cash paymants for: Accounts payable. Payrol. Distribution of payroll earned: Direct labor. 144,900 1,300 75,000 21,800 18,500 4,400 Indirect labor. Cash collected from customers. 116,90 27,450 Applied factory overhead. Units transferred to finished goods, 20,400 Cost of goods'sold is calculated on the fifo basis. Work In process inventory on October 31. 4,440 Required: (1) Prepare In detall the cost of goods sold section of the income statament for October, assuming that over- or underapplied factory overhead is deferred until the end of the calendar year. (2) Prepare the income statement for October. (3) Calculate the amount of over- or underapplled factory overhend for October.
S. Income statement; cost of goods sold statement; faciory overhead anaiysis. October 1, the accountant of Columbus Company prepared a trial balance from wiic te following accounts were extracted: Finished Goods (2,800 units). Work in Process (1,200 units). $ 9,800 4,070 40,700 48,000 Materials and Supplies.. Buildings.. Accumulated Depreciation-Buildings. Machinery and Equipmen.. Accumulated Depreciation-Machinery and Equipment. Office Equipment... Accumulated Depreciation-Office Equipment. Accrued Payroll.. $ 6,000 96,000 37,500 3,200 1,000 650 The following transactions and other data have been made available for October: Purchased materials and supples. Pald factory overhead.. Paid markeling expenses.. Paid administrative expenses. Requisitions for: Direct materials. $ 24,800 20,100 25,050 19,700 29,800 3,950 Indirect materials.. Depreciation: Building, 5% (75% to manufacturing, 15% to marketing, and 10% to administrative expenses) Machinery and equipment, 10% Office equipment, 15% (40% to marketing and 60% to administrative expenses) Sales (20,700 units). Sales retums and allowances. Cash paymants for: Accounts payable. Payrol. Distribution of payroll earned: Direct labor. 144,900 1,300 75,000 21,800 18,500 4,400 Indirect labor. Cash collected from customers. 116,90 27,450 Applied factory overhead. Units transferred to finished goods, 20,400 Cost of goods'sold is calculated on the fifo basis. Work In process inventory on October 31. 4,440 Required: (1) Prepare In detall the cost of goods sold section of the income statament for October, assuming that over- or underapplied factory overhead is deferred until the end of the calendar year. (2) Prepare the income statement for October. (3) Calculate the amount of over- or underapplled factory overhend for October.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 39P
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