Question

hever flowchart or diagram tool you feel most comfortable with. Paste it

on the OVERVIEW DIAGRAM sheet.

B: Prepare journal entries to summarize the 2017 transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to the Cost of Goods Sold (COGS) account. Assume COGS given of $4,020 does not include the write off of overallocated manufacturing overhead. Use the template on the JOURNAL ENTRIES sheet.

C: Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing

Overhead Allocated. Use the template on the T-ACCOUNTS sheet.

D: How did the SRS Educational Press perform in 2017? Should the company continue to have in-house press production? Support your answer with relevant data. put answer on the PERFORMANCE sheet.

SRS COST DATA · Direct materials and supplies purchased on credit: $800 · Direct materials used: $710 · Indirect materials issued to various production departments: $100 · Direct manufacturing labor: $1,300· Indirect manufacturing labor incurred by various production departments: $900· Depreciation on building and manufacturing equipment: $400· Miscellaneous manufacturing overhead incurred by various production departments: $550o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.)· Manufacturing overhead allocated at 160% of direct manufacturing labor costs: ?· Cost of goods manufactured: $4,120· Revenues: $8,000· Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead): $4,020· Inventories, December 31, 2016 (not 2017):o Materials control: $100o Work-in-process control: $60o Finished goods control: $500

Answer 1

ans B	Geneal Journal	DR	cR
a)	Material Control	800
	Accounts Payable		800
b	Work In process Control	710
	Manufacturing Overhead	100
	Material Control		810
c	Work In process Control	1300
	Manufacturing Overhead	900
	Wages payable		2200
d	Manufacturing Overhead Control	950
	Accounts Payable		400
	Accumualted Depreciation-Equipment		550
e	Work In process Control	2080
	Manufacturing Overhead (1300*160%)		2080
f	Finished Goods Inventory	4120
	Work In process Control		4120
g	Accounts Receivable	8000
	Sales		8000
	Cost of good sold	4020
	Finished Goods Inventory		4020
h	Manufacturing Overhead Control	130
	Cost of good sold		130

	Material control
Beg bal	100	b	710
a	800	b	100
end bal	90
	Work In process Control
Beg bal	60	f	4120
b	710
c	1300
e	2080
end bal	30
	Finished Goods Inventory
beg bal	500	g	4020
f	4120
end bal	600
	Manufacturing overhead
b	100	e	2080
c	900
d	950
h	130
	Cost og Good sold
g	4020	h	130
end bal	3890

Yes it performed well the gross profit margin is almost 51%
(8000-3890)/8000*100	51.375
Yes the company should continue in house production