Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 17, Problem 32AP
Mighty Stars produces stars for elementary teachers to reward their students. Mighty Stars’
June 1 balances in the subsidiary ledgers were as follows:
- Raw Materials Inventory subsidiary ledger: Paper, $4,000; indirect materials, $2,000
- Work-in-Process Inventory subsidiary ledger: Job 120, $40,000; Job 121, $0
- Finished Goods Inventory subsidiary ledger: Large Stars, $9,900; Small Stars, $10,500
June transactions are summarized as follows:
- a. Collections on account, $145,000.
- b. Selling and administrative expenses incurred and paid, $32,000.
- c. Payments on account, $39,000.
- d. Materials purchases on account: Paper, $24,000; indirect materials, $4,200.
- e. Materials requisitioned and used in production:
- f. Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect labor, $18,400.
- g. Wages paid in June include the balance in Wages Payable at May 31 plus $36,100 of wages incurred during June.
- h.
Depreciation on plant and equipment, $2,500. - i. Manufacturing
overhead allocated at the predetermined overhead allocation rate of 80% of direct labor costs. - j. Jobs completed during the month: Job 120 with 700,000 Large Stars at a total cost of $47,430.
- k. Sales on account: all of Job 120 for $104,000.
- l. Adjusted for overallocated or underallocated manufacturing overhead.
Requirements
- 1. Journalize the transactions for the company.
- 2. Open T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger. Insert each account balance as given, and use the reference Bal.
Post the journal entries to the T-accounts using the transaction letters as a reference. - 3. Prepare a trial balance at June 30, 2018.
- 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.
- 5. Prepare an income statement for the month of June.
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Preparing comprehensive accounting for manufacturing transactions
Mighty Stars produces stars for elementary teachers to reward their students Mighty Stars’ trial balance on June 1 follows:
June 1 balances in the subsidiary ledgers were as follows:
• Raw Materials Inventory subsidiary ledger: Paper, $4,000; indirect materials, $2,000
• Work-in-Process Inventory subsidiary ledger: Job 120, $40,000; Job 121, $0
June transactions are summarized as follows:
a. Collections on account, $145,000.
b. Selling and administrative expenses incurred and paid, $32,000.
c. Payments on account, $39,000.
d. Materials purchases on account: Paper, $24,000; indirect materials, $4,200.
e. Materials requisitioned and used in production:
f. Wages incurred during June, $39,000. Labor time records for the month: Job 120, $3,600; Job 121, $17,000; indirect labor, $18,400.
g. Wages paid in June include the balance in Wages Payable at May 31 plus $36,100 of wages incurred during June.
h. Depreciation on plant and…
Zoe Corporation has the following information for the month of March:
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process, March 1
22,000
Work in process, March 31
23,500
Finished goods inventory, March 1
21,000
Finished goods inventory, March 31
30,000
Sales
257,000
Sales and administrative expenses
79,000
a. Prepare a schedule of cost of goods manufactured.
Zoe Corporation
Statement of Cost of Goods Manufactured
For Month Ended March 31
$
Direct Materials:
$
$
Cost of direct materials used
$
Total manufacturing costs incurred
Total manufacturing costs
$
Cost of goods manufactured
$
b. Prepare an income statement for the month ended March 31.
Zoe Corporation
Income Statement
For Month Ended March 31
$
Cost of…
Zoe Corporation has the following information for the month of March:
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process, March 1
22,000
Work in process, March 31
23,500
Finished goods inventory, March 1
21,000
Finished goods inventory, March 31
30,000
Sales
257,000
Sales and administrative expenses
79,000
a. Prepare a schedule of cost of goods manufactured.
Zoe Corporation
Statement of Cost of Goods Manufactured
For Month Ended March 31
Beginning work in process inventory, March 1
$fill in the blank 857f0a0ad075ffa_2
Direct Materials:
Beginning materials inventory
$fill in the blank 857f0a0ad075ffa_4
Purchases
fill in the blank 857f0a0ad075ffa_6
Cost of materials available for use
$fill in the blank 857f0a0ad075ffa_8
Less ending materials inventory
fill in the blank 857f0a0ad075ffa_10
Cost of direct…
Chapter 17 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Prob. 6TICh. 17 - Record the following journal entries for Smith...Ch. 17 - Prob. 8TICh. 17 - Prob. 9TICh. 17 - Prob. 10TI
Ch. 17 - Prob. 11TICh. 17 - Prob. 12TICh. 17 - The following information pertains to Smith...Ch. 17 - Prob. 14TICh. 17 - Prob. 15TICh. 17 - Prob. 16TICh. 17 - Wesson Company is a consulting firm. The firm...Ch. 17 - Prob. 18TICh. 17 - Would an advertising agency use job order or...Ch. 17 - Prob. 2QCCh. 17 - When a manufacturing company uses indirect...Ch. 17 - When a manufacturing company uses direct labor, it...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - A manufacturing company completed work on a job....Ch. 17 - For which of the following reasons would David...Ch. 17 - Why do managers need to know the cost of their...Ch. 17 - What types of companies use job order costing...Ch. 17 - What types of companies use process costing...Ch. 17 - What is the purpose of a job cost record?Ch. 17 - Explain the difference between cost of goods...Ch. 17 - A job was started on May 15, completed on June 27,...Ch. 17 - Give the journal entry for raw materials purchased...Ch. 17 - What is the purpose of the raw materials...Ch. 17 - How does the use of direct and indirect materials...Ch. 17 - Prob. 10RQCh. 17 - Give five examples of manufacturing overhead...Ch. 17 - What is the predetermined overhead allocation...Ch. 17 - What is an allocation base? Give some examples.Ch. 17 - How is manufacturing overhead allocated to jobs?Ch. 17 - A completed job cost record shows the unit cost of...Ch. 17 - Prob. 16RQCh. 17 - Give the journal entry for the completion of a...Ch. 17 - Prob. 18RQCh. 17 - Explain the difference between underallocated...Ch. 17 - If a company incurred 5,250 in actual overhead...Ch. 17 - Prob. 21RQCh. 17 - Explain the terms accumulate, assign, allocate,...Ch. 17 - Prob. 23RQCh. 17 - Prob. 24RQCh. 17 - Would the following companies most likely use job...Ch. 17 - Prob. 2SECh. 17 - Analyze the following T-accounts to determine the...Ch. 17 - Prob. 4SECh. 17 - Oak Outdoor Furniture manufactures wood patio...Ch. 17 - Job 303 includes direct materials costs of 550 and...Ch. 17 - Calculating predetermined overhead allocation...Ch. 17 - Lincoln Company completed jobs that cost 38,000 to...Ch. 17 - Columbus Enterprises reports the following...Ch. 17 - The T-account showing the manufacturing overhead...Ch. 17 - Adjusting Manufacturing Overhead Justice Companys...Ch. 17 - Prob. 12SECh. 17 - Prob. 13SECh. 17 - Prob. 14SECh. 17 - Prob. 15ECh. 17 - Defining terminology Match the following terms to...Ch. 17 - Prob. 17ECh. 17 - Goldenrod Company makes artificial flowers and...Ch. 17 - Selected cost data for Classic Print Co. are as...Ch. 17 - Prob. 20ECh. 17 - Prob. 21ECh. 17 - Prob. 22ECh. 17 - Jordan Company has the following information for...Ch. 17 - Journalize the following transactions for Marges...Ch. 17 - Prob. 25ECh. 17 - Analyze the following T-accounts, and determine...Ch. 17 - Prob. 27ECh. 17 - Clement Manufacturing makes carrying cases for...Ch. 17 - Ki Technology Co. manufactures DVDs for computer...Ch. 17 - Superior Construction, Inc. is a home builder in...Ch. 17 - Accounting for manufacturing overhead Prestige...Ch. 17 - Mighty Stars produces stars for elementary...Ch. 17 - Bluebird Design, Inc. is a Web site design and...Ch. 17 - Sutherland Manufacturing makes carrying cases for...Ch. 17 - Ye Technology Co. manufactures DVDs for computer...Ch. 17 - Meadow Construction, Inc. is a home builder in...Ch. 17 - Accounting for manufacturing overhead Elegant...Ch. 17 - Hero Stars produces stars for elementary teachers...Ch. 17 - Skylark Design, Inc. is a Web site design and...Ch. 17 - Accounting for manufacturing overhead This problem...Ch. 17 - Granite Construction Incorporated is a major...Ch. 17 - Hiebert Chocolate, Ltd. is located in Memphis. The...Ch. 17 - Prob. 1FC
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