Question

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 factory expired with a credit to the prepaid insurance account, $6,200. 9. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. 1. Depreciation on office equipment, $800; on sales vehicles, $1,650. 1. Legal fees incurred but not yet paid for preparation of lease agreements, $750. k. Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the mont 1. Cost of jobs completed during the month, $160,000, 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:

Answer 1

122 W Materials inventory Particulars Amount Particulars умом 7500 balance old Accounts payable 60100 Wool in process oreonead Connol balance cld 59000 8,800 8,800 67,600 67600 work in process Inventory Finished goods Balance bid materiais inventory woges papable over head to Dro! 160,000 74,000 barlace old 37000 50 75000 72000 234000 234000 Finished goods Invention Balance bold woon in process Balance bid 210,000 50,000 160,ooo 29000 210,000

123 overhead conbol 70 materials inventusy wood in proces 72000 8,800 vages payable 36,000 Accumulated depreciation 10400 Property tax payable 1450 Prepaid Insurance 6200 atilities payable 5500 Balance 3650 72000 72000 of cost of goods manufactured year ended Amount 50,00 75,00 Statement For the particulars Direct marerial Direct la bond overbead: Indirect materials 8800 Indirect labour 36000 Depreciation 16400 pooperty taxes 1450 utilities 5 500 62oo 68350 Add: Additional overhead 3650 Af Add: Beginning work in poress cess . ending work in paess Insurance 72,000 197,000 37,000 (74,000) cost of Goods manuzactured 160,000

Amounty Particulars Material names al Inventory Oy Accounts payable Amount con 60,100 60,oo TO pv work in process ak Ovey head onrol al To maternis 50,000 8.800 58800 D7 OY work in process ak overhead control 96 Administitive Expense ak Selling expense all To wages payable 75,000 36,000 26,000 19,000 $ 158,000 104000 Overhead conbol alc 70 Accumulated depreciation !04400 1450 Overhead Conno al To poperty tax pargate 1450 6200 over head Conbo alc To prepaid insurance 6200 D 5500 Overhead Control ak To intilitres payable 5500 Selling expense 916 7900 To cash 7900

127 Administrative expense al Selling El pense ak 70 Acumulated depreciation 800 1650 DO 2450 750 4dminisatie Expense al TO Accounts payable 750 DU work 72,000 in poocess al To orehead control alc. 72,000 br 160,000 Finished goods alc 70 work in process ! 60,000