(a) T- account as follows:
Cash | |||
Capital | $130,000 | Direct raw material | $38,000 |
Revenue | $66,000 | Indirect raw material | $900 |
Direct labor | $52,700 | ||
Overhead | $13,000 | ||
Selling and administration expense | $5,000 | ||
Ending balance | $86,400 |
Capital | |||
Cash | $130,000 | ||
Ending balance | $130,000 |
Revenue | |||
Income Summary | $66,000 | Cash | $66,000 |
Ending balance | $0 |
Raw material | |||
Cash | $38,000 | WIP-Cutting | $11,000 |
Ending balance | $27,000 |
Manufacturing Overhead | |||
Cash | $22,600 | WIP-Cutting ($20000*$0.5) | $10,000 |
WIP-Assembly ($24000*$0.5) | $12,000 | ||
COGS | $600 | ||
Ending balance |
Cost of Goods Sold | |||
Finished Goods | $36,000 | Income Summary | $36,600 |
Overhead | $600 | ||
Ending balance |
Retained Earnings | |||
Income Summary | $24,400 | ||
Ending balance | $24,400 |
Work in process cutting | |||
Direct material | $11,000 | WIP- Assembly | $24,000 |
Direct Labor | $20,000 | ||
Overhead | $10,000 | ||
Ending balance | $17,000 |
Selling and Administrative Expenses | |||
Cash | $5,000 | Income Summary | $5,000 |
Ending balance | $0 |
Work in process Assembly | |||
WIP-Cutting | $23,000 | Finished Goods | $40,000 |
Direct labor | $24,000 | ||
Overhead | $12,000 | ||
Ending balance | $19,000 |
Finished Goods | |||
WIP- Assembly | $40,000 | COGS | $36,000 |
Ending balance | $4,000 |
Production supplies | |||
Cash | $900 | Overhead | $800 |
Ending balance | $100 |
___________________________________________________________________
Income Statement as follows:
Income Statement | |
Revenue | $66,000 |
COGS | ($36,000) |
Over applied manufacturing overhead | ($600) |
Gross profit | $29,400 |
Selling and administrative expenses | ($5,000) |
Operating profit | $24,400 |
As HOMEWORKLIB guideline completed
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