FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Auto-Motion is a lean manufacturer of self-driving wheelchairs. The company budgets $608,000 of conversion costs and 1,900
production hours for the next year. Each wheelchair requires 25 production hours and materials costs of $4,470. The company started
and completed 92 wheelchairs during the year and sold 82. Each wheelchair is sold for $16,500. Actual conversion costs equal
applied conversion costs.
Required
1. Prepare journal entries to record (a) the purchase of raw materials on credit to produce 97 units, (b) applied conversion costs to the
production of 92 units, (c) actual conversion costs of $736,000 (credit "Various Accounts"), (d) sale of 82 units on credit, and (e) ending
inventory and cost of goods sold.
2. Compute the ending balances of Work in Process Inventory, Finished Goods Inventory, and Conversion Costs. Assume each of
these inventory accounts began the year with a balance of zero.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare journal entries to record (a) the purchase of raw materials on credit to produce 97 units, (b) applied conversion costs to the
production of 92 units, (c) actual conversion costs of $736,000 (credit "Various Accounts"), (d) sale of 82 units on credit, and (e) ending
inventory and cost of goods sold.
View transaction list
expand button
Transcribed Image Text:Auto-Motion is a lean manufacturer of self-driving wheelchairs. The company budgets $608,000 of conversion costs and 1,900 production hours for the next year. Each wheelchair requires 25 production hours and materials costs of $4,470. The company started and completed 92 wheelchairs during the year and sold 82. Each wheelchair is sold for $16,500. Actual conversion costs equal applied conversion costs. Required 1. Prepare journal entries to record (a) the purchase of raw materials on credit to produce 97 units, (b) applied conversion costs to the production of 92 units, (c) actual conversion costs of $736,000 (credit "Various Accounts"), (d) sale of 82 units on credit, and (e) ending inventory and cost of goods sold. 2. Compute the ending balances of Work in Process Inventory, Finished Goods Inventory, and Conversion Costs. Assume each of these inventory accounts began the year with a balance of zero. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) the purchase of raw materials on credit to produce 97 units, (b) applied conversion costs to the production of 92 units, (c) actual conversion costs of $736,000 (credit "Various Accounts"), (d) sale of 82 units on credit, and (e) ending inventory and cost of goods sold. View transaction list
View transaction list
Journal entry worksheet
1
2 3
4
Record the purchase of raw materials to produce 97 units on credit.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
View general journal
expand button
Transcribed Image Text:View transaction list Journal entry worksheet 1 2 3 4 Record the purchase of raw materials to produce 97 units on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal
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