Annual Depreciation of office furnitures | $1,225 | (98000/8) | |||||
Annual Depreciation of office Equipment | $ 7,000 | (31400-3400)/4 | |||||
JOURNAL ENTRY | |||||||
Account Title | Debit | Credit | |||||
Cash | $90,000 | ||||||
Common Stock | $90,000 | ||||||
Office Furniture | $9,800 | ||||||
Cash | $9,800 | ||||||
Equipment | $31,400 | ||||||
Cash | $31,400 | ||||||
Administration Salaries | $11,700 | ||||||
$11,700 | |||||||
Production Wages | $15,900 | ||||||
$15,900 | |||||||
Direct Material | $11,540 | ||||||
Cash | $11,540 | ||||||
Depreciation expense-Furniture | $1,225 | ||||||
Accumulated Depreciation-Furniture | $1,225 | ||||||
Depreciation expense-Equipment | $ 7,000 | ||||||
Accumulated Depreciation-Equipment | $ 7,000 | ||||||
Cash | $52,000 | (3250*16) | |||||
Sales Revenue | $52,000 | ||||||
TOTAL PRODUCT COST | |||||||
A | Direct Material | $11,540 | |||||
B | Direct Labor | $15,900 | |||||
C | Manufacturing Overhead | $7,000 | |||||
D=A+B=C | Total Product Cost | $34,440 | |||||
E | Units Produced | 4200 | |||||
F=D/E | Average Cost per unit | $8.20 | |||||
G | Units Sold | 3250 | |||||
H=F*H | Cost of goods sold | $26,650 | |||||
I=D-H | Ending Inventory | $7,790 | |||||
NET INCOME | |||||||
J | Sales Revenue | $52,000 | |||||
K | Cost of goods sold | $26,650 | |||||
L=J-K | Gross Profit | $25,350 | |||||
M | Administrative Salaries | $11,700 | |||||
N | Depreciation-Furniture | $1,225 | |||||
P=L-N-M | Net Income | $12,425 | |||||
a | Total Product Cost | $34,440 | |||||
b | Average Cost per unit | $8.20 | |||||
c | Cost of goods sold | $26,650 | |||||
d | Ending Inventory | $7,790 | |||||
e | Net Income | $12,425 | |||||
Franklin Manufacturing Company was started on January 1, 2018, when it acquired $90,000 cash by issuing...
Franklin Manufacturing Company was started on January 1, 2018, when it acquired $90,000 cash by issuing common stock. Franklin immediately purchased office furniture and manufacturing equipment costing $9,800 and $31,400, respectively. The office furniture d an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of four years. The company paid $11,700 for salaries of administrative personnel and $15,900 for wages to production personnel. Finally, the company paid...
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Walton Manufacturing Company was started on January 1, 2018, when it acquired $82,000 cash by issuing common stock. Walton immediately purchased office furniture and manufacturing equipment costing $9,100 and $25,700, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,800 salvage value and an expected useful life of three years. The company paid $11,700 for salaries of administrative personnel and $15,500 for wages to production personnel. Finally, the company paid...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $7,700 and $25,300, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid...
Stuart Manufacturing Company was started on January 1, 2018, when it acquired $79,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $7,700 and $32,700, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of four years. The company paid $11,400 for salaries of administrative personnel and $15,600 for wages to production personnel. Finally, the company paid...
Perez Manufacturing Company was started on January 1, 2018, when it acquired $79,000 cash by issuing common stock. Perez immediately purchased office furniture and manufacturing equipment costing $8,400 and $25,300, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of three years. The company paid $11,300 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid...
Perez Manufacturing Company was started on January 1, 2018, when it acquired $79,000 cash by issuing common stock. Perez immediately purchased office furniture and manufacturing equipment costing $8,400 and $25,300, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of three years. The company paid $11,300 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid...
Stuart Manufacturing Company was started on January 1, 2018, when it acquired $78,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,900, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,200 salvage value and an expected useful life of three years. The company paid $11,800 for salaries of administrative personnel and $15,200 for wages to production personnel. Finally, the company paid...