Question

Required information The following information applies to the questions displayed below Reimel Furniture Company, Inc. incurred the following costs during 20x2. Direct material used Direct labor Manufacturing overhead $172,000 321,000 170,000 During 20x2, products costing $122,000 were finished, and products costing $132,000 were sold on account for $193,000. There were no purchases of raw material during the year. The beginning balances in the firm's inventory accounts are as follows: Raw material Work in process Finished goods $225,000 16,000 30,000

Answer 1

Solution - Ledger worksheet of reimel furniture company inc.

1) Raw Material Ledger

Debit	Amount	Credit	Amount
To Opening Balance	$225000	By Work In process	$172000
		By Closing balance	$53000
Total	$225000	Total	$225000

2) Wages Payable Ledger

Debit	Amount	Credit	Amount
To Closing balance	$321000	By Work in Process	$321000
Total	$321000	Total	$321000

3) Finished goods ledger

Debit	Amount	Credit	Amount
To Opening Balance	$30000	By Cost of goods sold	$132000
To Work in Process	$122000	By Closing balance	$20000
Total	$152000	Total	$152000

4) Accounts Receivable ledger

Debit	Amount	Credit	Amount
To Sales	$193000	By closing balance	$193000
Total	$193000	Total	$193000

5) Work in process Ledger

Debit	Amount	Credit	Amount
To Opening balance	$16000	By Finished goods	$122000
To Raw Material	$172000	By Closing balance	$557000
To Wages Payable	$321000
To Manufacturing Overhead	$170000
Total	$679000	Total	$679000

6) Manufacturing Overhead Ledger

Debit	Amount	Credit	Amount
To Cash (Since nothing is given in the question about payment mode of manufacturing overhead. It is asumed that these are incurred in cash	$170000	By Work in process	$170000
Total	$170000	Total	$170000

7) Sales revenue ledger

Debit	Amount	Credit	Amount
To Income Summary	$193000	By Accounts Receivable	$193000
Total	$193000	Total	$193000

8) Cost of goods sold ledger

Debit	Amount	Credit	Amount
To Finished goods	$132000	By Income Summary	$132000
Total	$132000	Total	$132000