Question

M&J Bakery Inc. opened for business on January 1^st 20XX as planned. During the month of January the business purchased and used 200 lbs. of flour, 200 lbs. of sugar, 67 dozen eggs, 20 baking soda boxes, 200 lbs. of butter, 100 lbs. of raisins, 50 bottles of rum, and other ingredients (one box of each for a total of four) all from one supplier on account. Manufacturing overhead is applied to production at $4per cake. Mary purchased the oven using the start-up capital and paid all salaries. Her nieces worked 300 hours in total for the month. January was a very good month for the bakery since it baked 200 cakes and sold all for cash. The average selling price was $50 per cake. All manufacturing overhead is closed out at month end. The supplier was paid at the month end.

Required: Document M&J Bakery Inc January transactions using T-accounts (round all calculations to 2 decimal places) All other costs such as utilities, must be accounted for in the T-accounts (assume such transactions where applicable, are paid in cash).  

Bal. Revenue Materiaks Salaries 0 Cash Register End Bal. Raw Materials Inventory Work in Process Inventory 0 Finished Goods Inwentory Bal. Flour Baking Soda Sugar Direct Materials usedBal. Cost of Goods Manuf Bal COGM End Bal. Cost of Go Direct M Direct L MOH End Bal. 0 Butter Raisins other End Bal. 0 Accummulated Depreciation Salary Payable 0 0 Bal. Bal. Salary Expense Depreciation 0 End Bal. Nieces Accountant End Bal. Sales 0 End Bal. Manufacturing Overhead Cost of Goods Sold Estimated MOH Bal. Cost of Goods Sold Bal. 0 End Bal. 0 End Bal. 0 Selling and Administrative Expenses Bal. 0 End Bal. 0 Standard per Cake tem and Ingredients Cost $6,000 (depreciated over 5 years on a SL basis. No salvage vakue) $0 (provided by the landlord) $0 (paid for by dad) $24 per 8 pounds bag $2 per dozen S15 per 25 pounds bag $6 per 14 pound boix $6.50 per 4 pounds $8 per 2 pounds Conventional oven Refigerator Baking pans, licenses Baking flour 1 pound 4 ety* 1 pound Sugar Baking Soda Butter Raīsins 1 pound 1/2 pound Others (currants, diced date, Mitmeg. molasses) Cash register Rum (akohol) Utilities fincludes gas, electric and water) Mobile phone {business) Salary Keisha Salary - nieces Salary - aunt Accountant Estimated MOH $30 for all 4 boxes per month 12 per month (rental for 2 years) $12 per bottle 1/4 qtr of bottle per month per month per month $8 per hour $100 per month $100 per month $4 per cake 1 person 1.5 hours per cake

Answer 1

Cash (in $)
Bal.	0	2329	Materials
Revenue	10000	3100	Salaries
		50	Phone
		12	Cash Register
End Bal.	4509

Raw Material Inventory (in $)
Bal.	0	2179	Direct Materials used
Flour	600	150	Indirect Materials used
Baking Soda	120
Sugar	120
Eggs	134
Butter	325
Raisins	400
Rum	600
Other	30
End Bal.	0

Work in progress Inventory (in $)
Bal	0	5379	COGM
Direct Material	2179
Direct Labour	2400
MOH	800
End Bal.	0

Finished Goods Inventory (in $)
Bal	0	5379	Cost of Goods sold
COGM	5379
End Bal.	0

Accumulated Depreciation (in $)
		0	Bal
		100	Depreciation
		100	End Bal.

Salary Payable($)
Bal	0
Salary Expense	3100	500	Keisha
		100	Aunt
		2400	Nieces
		100	Accountant
		0	End Bal.

Sales (in $)
		10000	Revenue
		10000	End Bal.

Manufacturing Overhead (in $)
Bal.	0	1000	Estimated MOH
Baking Soda	120
Other	30
Utilities	50
Rent (Bldg)	600
Aunt Salary	100
Depreciation	100
End Bal.	0

Cost of Goods Sold (in $)
Bal.	0
Cost of Goods Sold	5379
Depreciation & Aunt Salary under MOH	200
End Bal.	5579

Selling & Admimistrative Expense (in $)
Bal.	0
Keish Salary	500
Accountants	100
Phone	50
Cash Register	12
End Bal.	662