Steering Company produces custom windows to specifications provided by architects. At the end of its accounting period, its account balances indicated the following: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead (credit balance) Determine the adjusted balances of the accounts if the balance in Manufacturing Overhead is considered material in amount. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places e.g. 15,000.) Raw Material Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold $ $ $ $64,000 90,000 35,000 375,000 60,000 $ Adjusted Balance

Steering Company produces custom windows to specifications provided by architects. At the end of its accounting period, its account balances indicated the following: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead (credit balance) Determine the adjusted balances of the accounts if the balance in Manufacturing Overhead is considered material in amount. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places e.g. 15,000.) Raw Material Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold $ $ $ $64,000 90,000 35,000 375,000 60,000 $ Adjusted Balance

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 8E: The following data are taken from the general ledger and other records of Phoenix Products Co. on...

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Answer the following questions by analysing the T-accounts given below. a) Purchases of direct material b) The cost of direct material used c) Why does direct labor account has a credit balance of $5000? Explain d) Direct labor costs assigned to production e) The overhead as a percentage of direct labor costs f) Total manufacturing costs charged to the Work in Process Inventory account during the current year g) The cost of finished goods manufactured h) The year-end balance in the Work in Process Inventory account i) The cost of goods sold j) The total amount of inventory listed in the hear-end balance sheet k) Manufacturing overhead assigned to production
Journalize the following transactions for Tamarisk Manufacturing. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)a. Purchased 6,200 units of raw materials on account for $15, 110. The standard cost was $15,500.b Issued 5, 300 units of raw materials for production. The standard units were 6, 100.
Account Titles and Explanation Debit Credit Direct Materials Inventory 583000 Accounts Payable 58300 (To record purchase of direct materials) Manufacturing Overhead 132000 (10 recora appiiea manuracturing overnead) Supplies Inventory 13200 7. Finished Goods Inventory 2410000 (To record use of indirect materials in production) Work in Process Inventory 569000 Work in Process Inventory 241000 56900 (To record transfer of completed goods to Finished Goods Inventory) Direct Materials Inventory (To record use of direct materials in production) 8. Cost of Goods Sold 2398000 Work in Process Inventory 791000 Wages Payable 79100 Finished Goods Inventory 239800 (To record direct labor payroll) (To record cost of goods sold for the period) Manufacturing Overhead 690000 Accounts Payable 690001 (To record actual manufacturing overhead) Work in Process Inventory 1071000 Manufacturing Overhead 107100
Prepare a T-account for each account on the company’s balance sheet, and enter the beginning balances. Make entries directly into the T-accounts for the transactions given above. Create new T-accounts as needed. Determine an ending balance for each T-account. Was manufacturing overhead underapplied or overapplied for the year? Assume that the company allocates any overhead balance among the Work in Process, Finished Goods, and Cost of Goods Sold accounts, using the overall balances in each account. Prepare a journal entry to show the allocation. (Round allocation percentages to one decimal place.) Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the T-accounts.)
Journalize the following transactions for Waterway Manufacturing. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) a. Purchased 6,200 units of raw materials on account for $14,770. The standard cost was $15,190. b. Issued 5,500 units of raw materials for production. The standard units were 6,100. No Account Titles and Explanation a. b. Debit Credit
Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledger of materials inventory for May is as follows: a. Complete the materials isuances and balances for the materials subsidiary ledger under FIFO. Received Issued Balance Receiving Materials Unit Unit Report Quantity Requisition Quantity Amount Date Quantity Amount Price price Number Number May 1 260 $8 $2,080 25 $10 260 V 2,080 V 180 May 4 180 V 10 V 1,800 103 290 May 10 10 V 31 120 12 May 21 10 V 12 V 116 170 May 27 12 Feedback V Check My Work a. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity. b. Determine the materials inventory balance at the end of May. Feedback V Check My Work b. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity.
As of 31st March, 2019, the following balances existed in a firm's cost ledger, which is maintained separately on a double entry basis : Credit $ Debit Stores Ledger Control A/c Work-in-Progress Control A/c Finished Goods Control A/c 3,00,000 1,50,000 2,50,000 Manufacturing Overhead Control A/c Cost Ledger Control A/c 15,000 6,85,000 7,00,000 7,00,000 During the next quarter, the following items arose : 24 2,25,000 Cost of Sales 85,000 Materials Issued to Production 1,25,000 Sales Returned (at Cost) 40,000 Materials Returned to Suppliers 20,000 Manufacturing Overheads 85,000 1,75,000 1,35,000 9,000 13,000 Finished Product (at cost) Manufacturing Overheads Incurred Raw Material Purchased Factory Wages Indirect Labour Charged to Production You are required to prepare the Cost Ledger Control A/c, Store Ledger Control A/c, Work-in- Progress Control A/c, Finished Stock Ledger Control A/c, Manufacturing Overhead Control A/c, Wages Control A/c, Cost of Sales A/c and the Trial Balance at the…
Ivano Company has collected cost accounting information for the following subset of items forYears 1 and 2. Required:Calculate the values of the missing Items a through e.
Sandar Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours Fixed manufacturing overhead cost Variable manufacturing overhead per computer-hour 90,000 $1,278,000 $5.30 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year ended 31 December 2019: Computer-hours 85,000 Purchase of raw materials $7,890,000 Direct labor cost $1,722,000 Manufacturing overhead costs: Insurance, factory ... $ 88,000 Depreciation of equipment 170,000 Indirect material . Indirect labor . 12,000 327,000 Property taxes 85,000 Maintenance. 630,000 Rent, building…
Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 2,000 units, 35% completed To Finished Goods, 46,000 5,440 75,200 Direct materials, 47,000 units @ $1.6 Direct labor 114,200 44,410 Factory overhead Bal. ? units, 45% completed
Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for the month): Account Titles Work-in-Process Inventory (Direct Labor) Wages Payable Direct Materials Inventory Accounts Payable Finished Goods Inventory Work-in-Process Inventory Cost of Goods Solda Finished Goods Inventory Debit 7,200 122,130 136,800 131,400 Credit 7,200 Required: a. What was the finished goods inventory balance on November 30? b. How much manufacturing overhead was applied for November? c. What was the manufacturing overhead rate for November? d. How much manufacturing overhead was incurred for November? e. What was the Work-in-Process Inventory on November 1? f. What was the Work-in-Process Inventory on November 30? 122,130 136,800 131,400 aThis entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold once for the month. For November, the amount written…
Required: (a) What is the balance in the Cost of Goods Sold account after the adjustment? (b) Compute, BuiltbyHands Stores‘gross profit earned on the jobs completed. (c) Open T-accounts for Materials Inventory, Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts & determine the ending account balances.