Benning Inc is a defense contractor that uses job costing. Because the firm uses a perpetual inventory system, the 3 supporting schedules to the income statement (the schedule of raw materials placed in production, the schedule of cost of goods manufactured and the schedule of cost of good sold) are NOT necessary. Inventory account beginning balances at January 1,2012 are listed as follows:
Raw Materials Inventory - $500,000
Work in Process Inventory - $ 700,000
Finished good inventory - $1,800,000
You will be recording the following transactions, which summarize the activities that occurred during the year ended December 31, 2012.
Based on the balance in the manufacturing overhead account prepared in requirement B, prepare a journal entry to close the manufacturing overhead account to cost of good sold.
T Account for manufacturing overhead:
Manufacturing Overhead | ||||||
Raw Materials | $ 60,000.00 | Work in Process | $ 1,800,000.00 | |||
Wages Payable | $ 540,000.00 | |||||
Acc Dep -building | $ 580,000.00 | |||||
Prepaid Insurance | $ 220,000.00 | |||||
Accounts Payable | $ 80,000.00 | |||||
Cash | $ 440,000.00 | |||||
Ending Balance | $ 120,000.00 |
Benning Inc is a defense contractor that uses job costing. Because the firm uses a perpetual...
Benning Inc is a defense contractor that uses job costing. Because the firm uses a perpetual inventory system, the 3 supporting schedules to the income statement (the schedule of raw materials placed in production, the schedule of cost of goods manufactured and the schedule of cost of good sold) are NOT necessary. Inventory account beginning balances at January 1,2012 are listed as follows: Raw Materials Inventory - $500,000 Work in Process Inventory - $ 700,000 Finished good inventory - $1,800,000...
please solve for e.(Why is cost of goods sold adjusted upward on the income statement?) 43. Journal Entries, Closing Manufacturing Overhead, and Preparing an Income Statement. Jansen, Inc., is a defense contractor that uses job costing. Because the firm uses a perpetual inventory system, the three supporting schedules to the income statement the schedule of raw materials placed in production, the schedule of cost of goods manufactured, and the schedule of cost of goods sold) are not necessary. Inventory account...
Comprehensive Cases 43. Journal Entries, Closing Manufacturing Overhead, and Preparing an Income Statement Jansen, Inc., is a defense contractor that uses job costing. Because the firm uses a perpetual inventory system, the three supporting schedules to the income statement (the schedule of raw materials placed in production, the schedule of cost of goods manufactured, and the schedule of cost of goods sold) are not necessary. Inventory account beginning balances at January 1, 2016, are listed as follows. Raw materials inventory...
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