Question

Use the information in problems 1 - 2 to complete the T-accounts. 1 Sell 75,000 shares of $8 par value per share; the selling price is $5 per share Record the si le of stock on the T-Acciiunt worksheet Record the followini Beginning Balances on the T-Account workshet 2 a Work in Progress B 55,000 2 b Raw Materials 15,000 2 C Finished Goc is 25,000 2 d Work in Progress A 20,000 2 e Work in Progress C 30,000 Use the chart below to calculate #4-6 and record entries into the chirt for #7-15 3 a Number of Un ts produced 3 b Number of Un ts Sold 3 c Selling Price per Unit 3 d Direct Labor Cists 3 e Estimated DLH s to be worked 3 f Raw Material Ised in Production 3 & Indirect Labor Costs 3 h S&A Salaries 3 i Actual DLHs wurked 3 i FMOH Costs 3 k Manufacturing job costs completed during the year 3 | Direct Materia Purchases 3 m Operating Expenses 3 n Actual Job cos's for units sold 60,000 20,000 30 100,000 15,000 125,000 40,000 15,000 20,000 87,500 240,000 250,000 65,000 15

Answer 1

Answer 1, Below is the value of sale

a)No. of shares 75,000 (par value ($8)

b) Sale price= $9 per share

Total sales = (a)*(b)= 75,000*$9= 675,000, Below will be the journal entries

Bank Account Dr. ------------ 675,000 (Always will be sale proceeds)

Common Stock Cr -------- 600,000 (It is calculated as No. of shares* par value)

Additional paid in capital Cr---- 75,000 (Should be Total amount proceeds- Common stock value)