Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold
During May, the following transactions were completed and reported by Jerico Company:
The company also reported the following beginning balances in its inventory accounts:
Materials Inventory | $7,500 |
Work-in-Process Inventory | 37,000 |
Finished Goods Inventory | 50,000 |
Required:
1. Prepare journal entries to record the transactions occurring in May. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. | |||
b. | |||
c. | |||
d. | |||
e. | |||
f. | |||
g. | |||
h. | |||
i. | |||
j. | |||
k. | |||
l. | |||
2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process Inventory, and Finished Goods Inventory. Post the entries to the T-account in the same order in which they were journalized.
Materials Inventory | |||
---|---|---|---|
Balance | |||
Balance |
Work in Process Inventory | |||
---|---|---|---|
Balance |
Finished Goods Inventory | |||
---|---|---|---|
Balance |
Overhead Control | |||
---|---|---|---|
Balance |
3. Prepare a statement of cost of goods manufactured.
Jerico Company | ||
Statement of Cost of Goods Manufactured | ||
For the Month Ended May 31, 20XX | ||
$ | ||
Overhead: | ||
$ | ||
$ | ||
Manufacturing costs added | $ | |
Cost of goods manufactured | $ |
4. If the overhead variance is all allocated to
cost of goods sold, by how much will cost of goods sold decrease or
increase?
(Decreases or Increase) by $
Part 1 Options:
1 | Ref. | Account titles and explanation | Debit | Credit | ||||
a. | Materials inventory | 60100 | ||||||
Accounts payable | 60100 | |||||||
(Materials purchased on account) | ||||||||
b. | Work in process inventory | 50000 | ||||||
Overhead control | 8800 | |||||||
Materials inventory | 58800 | |||||||
(Materials issued to production) | ||||||||
c. | Work in process inventory | 75000 | ||||||
Overhead control | 36000 | |||||||
Salaries and wages expense | (28000+19000) | 47000 | ||||||
Salaries and wages payable | 158000 | |||||||
(Payroll recorded) | ||||||||
d. | Overhead control | 10400 | ||||||
Accumulated depreciation- Factory plant & equipment | 10400 | |||||||
(Depreciation recorded) | ||||||||
e. | Overhead control | 1450 | ||||||
Property taxes payable | 1450 | |||||||
(Property taxes due) | ||||||||
f. | Overhead control | 6200 | ||||||
Prepaid insurance | 6200 | |||||||
(Prepaid insurance expired) | ||||||||
g. | Overhead control | 5500 | ||||||
Utilities payable | 5500 | |||||||
(Factory utilities incurred) | ||||||||
h. | Selling expense | 7900 | ||||||
Cash | 7900 | |||||||
(Advertising expense paid) | ||||||||
i. | Depreciation expense | (800+1650) | 2450 | |||||
Accumulated depreciation- Office equipment | 800 | |||||||
Accumulated depreciation- Vehicles | 1650 | |||||||
(Depreciation recorded) | ||||||||
j. | Administrative expense | 750 | ||||||
Legal fees payable | 750 | |||||||
(Legal fees accrued) | ||||||||
k. | Work in process inventory | (4000*18) | 72000 | |||||
Overhead control | 72000 | |||||||
(Overhead charged to production) | ||||||||
l. | Finished goods inventory | 160000 | ||||||
Work in process inventory | 160000 | |||||||
(Cost of jobs completed) | ||||||||
2 | Materials inventory | |||||||
Particulars | Debit | Particulars | Credit | |||||
Beg. Bal. | 7500 | b. | 58800 | |||||
a. | 60100 | |||||||
67600 | 58800 | |||||||
End. Bal. | 8800 | |||||||
Overhead control | ||||||||
Particulars | Debit | Particulars | Credit | |||||
b. | 8800 | k. | 72000 | |||||
c. | 36000 | |||||||
d. | 10400 | |||||||
e. | 1450 | |||||||
f. | 6200 | |||||||
g. | 5500 | |||||||
68350 | 72000 | |||||||
End. Bal. | 3650 | |||||||
Work in process inventory | ||||||||
Particulars | Debit | Particulars | Credit | |||||
Beg. Bal. | 37000 | l. | 160000 | |||||
b. | 50000 | |||||||
c. | 75000 | |||||||
k. | 72000 | |||||||
234000 | 160000 | |||||||
End. Bal. | 74000 | |||||||
Finished goods inventory | ||||||||
Particulars | Debit | Particulars | Credit | |||||
Beg. Bal. | 50000 | |||||||
l. | 160000 | |||||||
210000 | 0 | |||||||
End. Bal. | 210000 | |||||||
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed...
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: Materials purchased on account, $60,100. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,700. Payroll for the month: direct labor, $75,000; indirect labor, $35,000; administrative, $28,000; sales, $19,000. Depreciation on factory plant and equipment, $10,500. Property taxes on the factory accrued during the month, $1,450. Insurance on the factory expired with a credit to...
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: Materials purchased on account, $60,100. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,700. Payroll for the month: direct labor, $75,000; indirect labor, $35,000; administrative, $28,000; sales, $19,000. Depreciation on factory plant and equipment, $10,400. Property taxes on the factory accrued during the month, $1,450. Insurance on the factory expired with a credit to...
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,200. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,700. c. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the...
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: Materials purchased on account, $60,200. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,700. Payroll for the month: direct labor, $75,000; indirect labor, $35,000; administrative, $28,000; sales, $19,000. Depreciation on factory plant and equipment, $10,500. Property taxes on the factory accrued during the month, $1,450. Insurance on the factory expired with a credit to...
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. C. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the...
help please? UULUU Journal Entries, T-Accounts, Cost of Goodanufacturernd Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,200. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; Indirect materials, $8,800. c. Payroll for the month: direct labor, $75,000; Indirect labor, $35,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,500. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on...
PROBLEMS Problem 5.26 Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. c. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f....
#5-26 During May, the following transactions were completed and reported by Jerico Company: Materials purchased on account, $60,100. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000. Depreciation on factory plant and equipment, $10,400. Property taxes on the factory accrued during the month, $1,450. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. Factory utilities, $5,500....
51-301-01 Chapter Two Assignment A Income Statement & Schedule of Cost of Goods Manufactured 5,000 Nick's Knacks Company had the following account balances as of January 1, 2020: Direct Materials Inventory $24,300 Supplies Inventory Work-In-Process Inventory 7,000 Finished Goods Inventory 18,000 Prepaid Insurance 8,000 During January, the company incurred the following costs: 1. Purchased $114,000 of direct materials and S50,000 of supplies on account. 2. Issued $134,000 of direct materials and $46,000 of supplies to production. 3. Accrued factory payroll...
Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials $317,850 $394,130 Work in process 572,130 536,020 Finished goods 549,880 547,840 Advertising expense $267,610 Depreciation expense-office equipment 37,840 Depreciation expense-factory equipment 50,840 Direct labor 606,960 Heat, light, and power-factory 20,100 Indirect labor 70,940 Materials purchased 595,140 Office salaries expense 207,710 Property taxes-factory 16,550 Property taxes-headquarters building 34,290 Rent expense-factory 27,980 Sales...