Question

Question Help 0 More Info trial balance on June 1 follows: June transactions are summarized as follo (Click the icon to view the transactions A Data Table • Raw Materials Inventory subsidiary ledger: Paper, $4,600; indirect materials, $1,300 • Work-in-Process Inventory subsidiary ledger: Job 120, $41,000; Job 121, $0 • Finished Goods Inventory subsidiary ledger: Large Stars, $9,600; Small Star $11,900 A Requirements Trial Balance June 1, 2018 0 More Info Account Title Balance Debit Credit 17,000 170,000 Cash $ Accounts Receivable 1. Journalize the transactions for the company. 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger have been opened for you along with each account's balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference. 3. Prepare a trial balance at June 30, 2018. 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June. 5. Prepare an income statement for the month of June. a. Collections on account, $155,000. b. Selling and administrative expenses incurred and paid, $33,000. c. Payments on account, $35,000. d. Materials purchased on account: Paper, $21,000; indirect materials, $4,300. e. Materials requisitioned and used in production: Inventories: Raw Materials 5,900 Work-in-Process 41,000 Finished Goods 21,500 260,000 Print Done Job 120: Paper, $ 900 Job 121: Paper, $ 7,950 Indirect materials, $ 1,600 f. Wages incurred during June, $41,000. Labor time records for the month: Job 120, $4,750; Job 121, $17,500; indirect labor, $18,750. g. Wages paid in June include the balance in the Wages Payable at May 31 plus $38,300 of wages incurred during June. h. Depreciation on plant and equipment, $2,700. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 50% of direct labor costs. j. Jobs completed during the month: Job 120 with 800,000 Large Stars at a total cost of $49,025. k. Sales on account: all of Job 120 for $105,000. I. Adjusted for overallocated or underallocated manufacturing overhead. Property, Plant, and Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Overhead 73,000 129,000 3,300 142,000 168,100 Selling and Administrative Expenses $ 515,400 $ 515,400 Total Print Done Print Done Clear All To remaining

Answer 1

1.

Transaction / Event	Account Titles	Debit	Credit
		$	$
a.	Cash	155,000
	Accounts Receivable		155,000
b.	Selling and Administrative Expense	33,000
	Cash		33,000
c.	Accounts Payable	35,000
	Cash		35,000
d.	Raw Materials Inventory	25,300
	Accounts Payable		25,300
e.	Work in Process Inventory	8,850
	Manufacturing Overhead	1,600
	Raw Materials Inventory		10,450
f.	Work in Process Inventory	22,250
	Manufacturing Overhead	18,750
	Wages Payable		41,000
g.	Wages Payable	41,600
	Cash		41,600
h.	Manufacturing Overhead	2,700
	Accumulated Depreciation : Equipment		2,700
i.	Work in Process Inventory	11,125
	Manufacturing Overhead		11,125
j.	Finished Goods Inventory	49,025
	Work in Process Inventory		49,025
k.	Accounts Receivable	105,000
	Sales Revenue		105,000
k.	Cost of Goods Sold	58,625
	Finished Goods Inventory		58,625
l.	Cost of Goods Sold	11,925
	Manufacturing Overhead		11,925

2.

Raw Materials Inventory
Beg. bal.	5,900	e.	10,450
d.	25,300
End. bal.	20,750
Work in Process Inventory
Beg. bal.	41,000	j.	49,025
e.	8,850
f.	22,250
i.	11,125
End. bal.	34,200
Finished Goods Inventory
Beg. bal.	21,500	k.	58,625
j.	49,025
End. bal.	11,900

3.

Trial Balance June 30, 2018
Account Titles	Debit	Credit
	$	$
Cash	62,400
Accounts Receivable	120,000
Inventories
Raw Materials	20,750
Work in Process	34,200
Finished Goods	11,900
Property Plant and Equipment	260,000
Accumulated Depreciation		75,700
Accounts Payable		119,300
Wages Payable		2,700
Common Stock		142,000
Retained Earnings		168,100
Sales Revenue		105,000
Cost of Goods Sold	70,550
Manufacturing Overhead	0
Selling and Administrative Expenses	33,000
Totals	$ 612,800	$ 612,800

5.

Income Statement For the month ended June 30, 2018
Sales Revenue	$ 105,000
Less: Cost of Goods Sold	70,550
Gross Profit	34,450
Selling and Administrative Expenses	33,000
Net Operating Income	1,450