Question

Prepare the necessary Journal Entries related to the manufacturing cycle

Manufacturing Process Information Dan started a small manufacturing plant that fabricates small drones. The manufacturing process starts with aluminum pellets being put into a molding machine. After the drone's frame is shaped in the mold the frame is cooled and inspected. If the drone passes inspection, the motor and propellers are added at the end and they are transferred to finished goods after inspection. This process is completely automated. Direct material aluminum is added 100% at the beginning of the process; direct material motors and propellers are added 100% as the last step in the process. Conversion costs are added equally throughout the process. Conversion is 55% complete for the beginning inventory work in process and 45% complete for the ending inventory work in process. At the beginning of the accounting period, Dan estimates that 15,200 drones will be produced. Estimated factory overhead is $3,800. This information is to be used to determine the application rate for overhead. Estimated and actual direct labor costs totaled $1,954.55 Actual factory overhead costs totaled $3,900. Selling and Administrative Expenses totaled $100,000 The following information is available concerning the direct materials. Direct Materials-Aluminum O pellets @$2.28a pound 4,000 pounds of pellets @ $2.28 a pound 200 pounds of pellets@$2.28 a pound Beginning inventory Purchase of aluminum Ending Inventory One pound of aluminum makes 4 drones Direct Materials-Prope!llers (there are four propellers for each drone) Beginning inventory Purchase of propellers 0 propellers @$0.10 a propeller 60,800 propellers @ $0.10 a propeller Direct Materials-Motor 0 motors @ $1.00 a drone 15,200 motors @$1.00 a drone Beginning inventory motors Purchase of motors The work in process account has the following information Beginning Work in Process contains 0 drones Ending work in process contains 300 drones

Answer 1

9,120$ Raw material - Aluminium Alc...Dr 9,1208 (4000x2.28) To cash / Accounts Payable Alc (Being Purchaseq Raw maternal-Aluminium) Raw material- moton Alc nanother 15,200 $ (15,200x1) Po cash/ Accounts Payable Alc 15,2008 (Being switchase of raw material - Motors) Iraw materid - Propellery Alce--.--Mo 6,080 3 060,800X0-b) To Cath/ Accounts Payable AIC 6,0808 Being Purchase & Raw matersal Propellers) Direct wages Alc .. annen. Der 1,954.55 $ (Given) I TO cath / Accounts Payable ALC 1954.55$ (Being Direct labour expenses recorded) Work in Progres ALC.-.- .Ar 29.444 $ I Po raw material Aluminium Ale 8,664 $ (15,200x0.57 To Raw material - motors Ale 15,200 $ CIS,200x12 Po raw material - Propellers ALC 6,080 860,800 8010) Being Direct materials consumed Work in progres Alc.. ----- Dr 1954.SS $ I To Direct wases Alc Being Direit wages consumed 1954.55 $ Work in Porrey ALC ....... Dr 39005 I To Factory overhead Alc Being overhead applied to production) 3900 $

Date Page Junihed foods A/C Dr. 34 219.-42 dl To Work in Progres AIC (Note: 34717:42$ f Being cost of Goods completed) Cost of Goods sold Alc. alke. Dr 33 958.36 (Note: 2 10 finished Goods AIC SON ovo 33,958-36 (Being costs Goode completed & pold) Workin Bogress 15200 units -Raw material - Aluminium 8664 - motos 1$200 - Propellery 6080 99444 units completed = 14,900 . 29444 x 14,900 15200 ct Direct wayes (+ factory overhead Portal 28.862: 81 $ 1954.55$ 3900 $ 34717.429 15200 14,900 34 717.42 Nok: 2 units Boduced & Cost of Good produced: units sold = 1200 I costa units sold 34,717.42 x 12ooo - 33958.368 14,900