FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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1. How much Is ending raw materials inventory?
2. How much is in ending work in process inventory? 
3. How much is in ending finished goods inventory? 
4. How much is gross profit?

This is a new manufacturing corporation that issued
$50000 common stock for cash on the first day. All
overhead expenses are paid immediately by cash. To
make it easy, there are no other operating expenses and
no income tax. No Dividend is declared for the year. Post
all journal entries in the General Ledger T-accounts and
using their respective balances prepare an Income
Statment and Balance Sheet for the first month of the
operation. Use a blank paper for posting into General
Ledger and preparation of the financial statements.
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Transcribed Image Text:This is a new manufacturing corporation that issued $50000 common stock for cash on the first day. All overhead expenses are paid immediately by cash. To make it easy, there are no other operating expenses and no income tax. No Dividend is declared for the year. Post all journal entries in the General Ledger T-accounts and using their respective balances prepare an Income Statment and Balance Sheet for the first month of the operation. Use a blank paper for posting into General Ledger and preparation of the financial statements.
Click in the account title sections of the journal entry and select the correct account titles to be
debited and credited from the pick list. Correct debit/credit selections will turn the cells green.
Assume the business commenced operations on January 1, and the summary entries below are
the only ones related to job costing activities. Calculate and enter the correct amounts that
would appear in financial statements as of the end of January. Correct values will turn the cells
green.
GENERAL JOURNAL
Date
During Jan.
GENERAL JOURNAL
Date
During Jan.
During Jan.
Raw Materials Inventory
Accounts Payable
To record purchase of raw materials
During Jan.
GENERAL JOURNAL
Date
Salaries Payable
Factory Overhead
During Jan.
Work in Process Inventory
Raw Materials Inventory
GENERAL JOURNAL
Date
To transfer $10,000 of raw materials to production, incur
$8,000 of direct labor, and apply $12,000 of overhead
Accounts Receivable
Accounts
Finished Goods Inventory
Work in Process Inventory
To transfer completed units to finished goods
Sales
GENERAL JOURNAL
Date
Accounts
Cost of Goods Sold
Accounts
To record sales of finished goods
Accounts
How much is gross profit? >>>>
Accounts
Finished Goods Inventory
To transfer finished goods to cost of goods sold
How much is in ending raw materials inventory? >>>>
How much is in ending work in process inventory? >>>>
How much is in ending finished goods inventory? >>>>
Debit
25,000
Debit
30,000
Debit
20,000
Debit
45,000
Debit
15,000
Credit
25,000
Credit
10,000
8,000
12,000
Credit
20,000
Credit
45,000
Credit
15,000
15,000
10,000
5,000
30,000
expand button
Transcribed Image Text:Click in the account title sections of the journal entry and select the correct account titles to be debited and credited from the pick list. Correct debit/credit selections will turn the cells green. Assume the business commenced operations on January 1, and the summary entries below are the only ones related to job costing activities. Calculate and enter the correct amounts that would appear in financial statements as of the end of January. Correct values will turn the cells green. GENERAL JOURNAL Date During Jan. GENERAL JOURNAL Date During Jan. During Jan. Raw Materials Inventory Accounts Payable To record purchase of raw materials During Jan. GENERAL JOURNAL Date Salaries Payable Factory Overhead During Jan. Work in Process Inventory Raw Materials Inventory GENERAL JOURNAL Date To transfer $10,000 of raw materials to production, incur $8,000 of direct labor, and apply $12,000 of overhead Accounts Receivable Accounts Finished Goods Inventory Work in Process Inventory To transfer completed units to finished goods Sales GENERAL JOURNAL Date Accounts Cost of Goods Sold Accounts To record sales of finished goods Accounts How much is gross profit? >>>> Accounts Finished Goods Inventory To transfer finished goods to cost of goods sold How much is in ending raw materials inventory? >>>> How much is in ending work in process inventory? >>>> How much is in ending finished goods inventory? >>>> Debit 25,000 Debit 30,000 Debit 20,000 Debit 45,000 Debit 15,000 Credit 25,000 Credit 10,000 8,000 12,000 Credit 20,000 Credit 45,000 Credit 15,000 15,000 10,000 5,000 30,000
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