Question

Exercise 175 (Part Level Submission) The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2017: Beginning Ending Inventories: Ra maials Work in process Finished goods $17,000 $19,000 9,000 14,000 11,000 8,000 $37,000 $41,000 In addition, the following transactions occurred in 2017: . Raw materials purchased on account, $75,000 2. Incurred factory labor, $80,000, all is direct labor. (Credit Factory Wages Payable) 3. Incurred the following overhead costs during the year: Utilities $6,800, Depreciation on manufacturing machinery $8,000, Manufacturing machinery repairs $9,200, Factory insurance $9,000 (Credit Accounts Payable and Accumulated Depreciation) Assigned $80,000 of factory labor to jobs. Applied $36,000 of overhead to jobs. 4. 5.

Answer 1

RAW MATERIAL INVENTORY
Balance		17,000	Work in process inventory		73,000
Accounts Payable		75,000
Ending Balance		19,000
Finished Goods inventory
Balance		11,000	Cost of goods sold		187,000
Work in process inventory		184,000
Ending balance		8,000
Manufacturing overheads
Balance		61,000	Work in process inv.		36,000
Accumulated dep		8,000
Accounts payable		25,000
(6800+9200+9000)
Balance		58,000
Work in Process inventory
Balance		9,000	Finished Goods Inventory		184,000
Raw material inventory		73,000
Wages Payable		80,000
Manufacturing Overheads		36,000
Balance		14,000
Factory Labour
Wages payable		80,000	Work in process inventory		80,000
Balance		0
Cost of goods sold
Finished Goods inventory		187,000
Balance		187,000