Question

Conundrum Corporation manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger. Raw Material Inventory 40,000 Bal. 11/30 45,000 Accounts Payable 12,200 Bal. 10/31 Work-in-Process Inventory Bal. 10/31 8,000 Finished-Goods Inventory Bal. 10/31 35,000 Manufacturing Overhead 60,000

Answer 1

Raw Material Inventory Credit Debit Debit Beginning Balance Purchases Accounts Payable Credit 81,000 Beginning Balance Purchase of Material (Bal) $ S Payment S 15,200 69,800 $ S 12,200 69,800 $ 40,000 Ending Balance $ 45,000 Ending Balance $ 1,000 Work in process inventory Debit Credit Beginning Balance $ 8,000 Finished goods Direct Material $ 40,000 Direct Labor $ 80,100 Overhead $ 60,000 Manufacturing overheads Debit Credit $ 60,000 $ 60,000 $ 150,075 Cost of Goods Sold Debit Credit Finished goods $ 182,000 Ending Balance IS 38,025 Finished goods inventory Debit Credit Beginning Balance $ 35,000 Cost of goods sold $ 182,000 Work in process $ 150,075 (Balance) Debit Payment Wages Payable Credit 79,500 Beginning balance Wage Expense (Balance) $ $ 1,000 $ 80,100 Ending Balance $ 3,075 Ending Balance $ 1,600

Accounts Receivable Sales Revenue Credit Debit Credit Debit Beginning Balance Sale Collection $ 205,100 $182,000*120% $ 218,400 $ 8,000 $ 218,400 Ending Balance $ 21,300

1. Sales revenue for November $ 218,400 $182,000*120% 2. November 30 Balance in Accounts Receivable $ 21,300 3. Cost of Raw Material purchased during November $ 69,800 4. Nov 30 Balance in Work in process inventory $ 38,025 5. Direct Labor added to WIP $ 80,100 6. Applied Overhead for November $ 60,000 7. Cost of goods completed during november $ 150,075 8. Raw Material Used during November $ 40,000 9. October 31 Balance in Raw Material inventory $ 15,200 10. Overapplied/Underapplied overhead 0