Evelyn Jordan started Jordan Manufacturing Company to make a universal television remote control device that she had invented. The company’s labor force consisted of part-time employees. The following accounting events affected Jordan Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated.)
Transactions for January 2018, First Month of Operation
Issued common stock for $10,500.
Purchased $400 of direct raw materials and $60 of production supplies.
Used $371 of direct raw materials.
Used 70 direct labor hours; production workers were paid $9.70 per hour.
Expected total overhead costs for the year to be $3,200, and direct labor hours used during the year to be 1,000. Calculate an overhead rate and apply the appropriate amount of overhead costs to Work in Process Inventory.
Paid $142 for salaries to administrative and sales staff.
Paid $22 for indirect manufacturing labor.
Paid $220 for rent and utilities on the manufacturing facilities.
Started and completed 100 remote controls during the month; all costs were transferred from the Work in Process Inventory account to the Finished Goods Inventory account.
Sold 80 remote controls at a price of $21.6 each.
Transactions for Remainder of 2018
Acquired an additional $18,000 by issuing common stock.
Purchased $3,940 of direct raw materials and $910 of production supplies.
Used $2,990 of direct raw materials.
Paid production workers $9.70 per hour for 890 hours of work.
Applied the appropriate overhead cost to Work in Process Inventory.
Paid $1,554 for salaries of administrative and sales staff.
Paid $239 of indirect manufacturing labor cost.
Paid $2,380 for rental and utility costs on the manufacturing facilities.
Transferred 950 additional remote controls that cost $12.74 each from the Work in Process Inventory account to the Finished Goods Inventory account.
Determined that $168 of production supplies was on hand at the end of the accounting period.
Sold 860 remote controls for $21.60 each.
Determine whether the overhead is over- or underapplied. Close the Manufacturing Overhead account to the Cost of Goods Sold account.
Close the revenue and expense accounts.
Required
For each of the above transactions, post the effects to the appropriate T-accounts.
Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018.
Evelyn Jordan started Jordan Manufacturing Company to make a universal television remote control device that she...
Evelyn Perez started Perez Manufacturing Company to make a universal television remote control device that she had invented. The company’s labor force consisted of part-time employees. The following accounting events affected Perez Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated.) Transactions for January Year 1, 1. First Month of Operation Issued common stock for $9,500. 2. Purchased $405 of direct raw materials and $60 of production supplies. 3. Used $238...
Evelyn Campbell started Campbell Manufacturing Company to make a universal television remote control device that she had invented. The company's labor force consisted of part-time employees. The following accounting events affected Campbell Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated) Transactions for January 2018, First Month of Operation 1. Issued common stock for $10,000. 2. Purchased $430 of direct raw materials and $65 of production supplies. 3. Used $248 of...
What is the manufacturing overhead
Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment Accumulated depreciation Common stock Retained earnings Total $20,000 1,800 2,400 4,200 15,000 $ 6,000 16,800 20,600 $ 43, 400 $43,400 Transactions for the Accounting Period 1. Fairport purchased $11,400 of direct raw materials and $600 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $10,800 of direct raw materials...
Finch Manufacturing started in 2018 with the following account
balances:
Cash
$
5,300
Common stock
4,313
Retained earnings
5,900
Raw materials inventory
1,700
Work in process inventory
840
Finished goods inventory (420 units @ $5.65 each)
2,373
Transactions during 2018
Purchased $2,910 of raw materials with cash.
Transferred $3,830 of raw materials to the production
department.
Incurred and paid cash for 190 hours of direct labor @ $15.10
per hour.
Applied overhead costs to the Work in Process Inventory...
Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $1,700 cash from the issue of common stock 2. Paid $510 cash for direct raw materials. 3. Transferred $380 of direct raw materials to work in process. 4. Paid production employees $640 cash 5. Paid $380 cash for manufacturing overhead costs. Applied $200 of manufacturing overhead costs to work in process. 7. Completed work on...
The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead. $123,900 119,500 77,000 March 1 Inventory balances Raw materials Work in process Finished goods March 31 Inventory balances Raw materials Work in process Finished goods During March Costs of raw materials purchased Costs of direct labor Costs of manufacturing overhead Sales revenues $ 85,900 146,900 80,200 $ 118,300 100,400 61,700 352,000 Required a. Prepare a schedule of cost of goods manufactured and sold....
Littlefield, Inc. produces universal remote controls. Littlefield uses a JIT costing system. One of the company's products has a standard direct materials cost of $8 per unit and a standard conversion cost of $28 per unit. During January 2018, Littlefield produced 625 units and sold 620 units on account at $49 each. It purchased $7,300 of direct materials on account and incurred actual conversion costs totaling $17,000 Read the requirements. Requirement 1. Prepare the summary journal entries for January. (Record...
The following information pertains to Flaxman Manufacturing
Company for March 2018. Assume actual overhead equaled applied
overhead.
March 1
Inventory balances
Raw materials $ 124,600
Work in process 119,200
Finished goods 76,300
March 31
Inventory balances
Raw materials $ 85,400
Work in process 146,100
Finished goods 80,800
During March
Costs of raw materials purchased $ 119,100
Costs of direct labor 101,800
Costs of manufacturing overhead 62,900
Sales revenues 355,000
Required
Prepare a schedule of cost of goods manufactured and
sold....
Please make sure first answer is in a HORIZONTAL FINANCIAL
STATMENTS MODEL.
Demonstration Problem for Chapter 11 Demonstration Problem 11-1: Manufacturing Cost Flows Natalie Nelson started Nelson Frame Company (NFC) to make a unique picture frame that she had invented. Ms. Nelson employs part-time workers as she needs them. Accounting information relevant to NFC's first year of operation follows. Assume all transactions are cash transactions unless otherwise stated Events 1 through 11 pertain to January, the first month of NFC's...
The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials Work in process Finished goods $123,600 119,900 76,300 00 5529 Мarch 31 Inventory balances Raw materials $86,200 145,700 80,400 Work in process Finished goods During March Costs of raw materials purchased Costs of direct labor $118,500 101,800 62,500 360,000 Costs of manufacturing overhead Sales revenues Required a. Prepare a schedule of cost of goods manufactured and sold....