factory had the following transactions during January: 1. Purchase of Direct Materials for cash: $118,000 2. Usage of Direct material: $72,000 Usage of Indirect material: $13,000 Direct labor incurred: $ 55,000(paid cash) Indirect labor incurred: $18,000 (on account) Manufacturing overhead costs incurred: Utilities $6,000 (paid cash), Depreciation on manufacturing machinery $7,000, Manufacturing machinery repairs $2,700 (paid cash), Insurance on the plant $5,000 (paid cash) Manufacturing overhead allocated: $45,000 Completion and transfer of jobs to finished goods: $152,000 Sale of finished goods: cost of goods sold $98,000 and selling price: $127,000 (sold on account). equired: Journalize the above transactions.

factory had the following transactions during January: 1. Purchase of Direct Materials for cash: $118,000 2. Usage of Direct material: $72,000 Usage of Indirect material: $13,000 Direct labor incurred: $ 55,000(paid cash) Indirect labor incurred: $18,000 (on account) Manufacturing overhead costs incurred: Utilities $6,000 (paid cash), Depreciation on manufacturing machinery $7,000, Manufacturing machinery repairs $2,700 (paid cash), Insurance on the plant $5,000 (paid cash) Manufacturing overhead allocated: $45,000 Completion and transfer of jobs to finished goods: $152,000 Sale of finished goods: cost of goods sold $98,000 and selling price: $127,000 (sold on account). equired: Journalize the above transactions.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
The following are the cost incurred by Ericson Company for the month of April: Factory Utilities $16,500 Depreciation, Factory Eq. $12,650 Depreciation, Del. Truck. $8,800 Repairs to office Equipment $1,300 Indirect Materials used $80,800 Direct Materials Used $137,600 Factory Manager’s Salary $13,000 Material Purchases $220,000 Direct Labor $89,100 Sales Salaries $46,400 Payroll $227,400 Indirect Factory Labor $48,900 Factory Repairs $2,000 Advertising $18,000 Office Supplies Used $5,640 Property Taxes on Factory Building $2,500 Additional Information: Mat, Beg. $20,000; Mat, end $??? WIP, Beg $0; WIP End (10 units) $??? FG Beg $0; Finished Units (80 units) $????; FG End (15 units) $??? Overhead is applied based on 150% of direct labor cost QUESTION: (1) Determine the total amount of a) Manufacturing Cost b) Selling Expenses c) Administrative (2) Supporting documents also.
The below transactions pertain to La Pharma Co. during the current year:1. Purchase of Direct Materials on credit: $512,0002,Usage of $275,000 Direct material and $62,000 indirect material3. Direct labor incurred amounted to $ 28,000 and was paid in cash4.Indirect labor incurred amounted to $5,000 on account5.Manufacturing overhead costs incurred are: Plant insurance $11,000 (paid cash), Utilities $8,000 (paid cash).Manufacturing repairs $4,800 (on account), Depreciation on manufacturing machinery $15,0006.Manufacturing overhead allocated amounted to $104,0007.Completion and transfer of jobs to finished goods: $605,0008. Sale of finished goods on account: cost of goods sold amount to $260,000 and sales amount to $392,000. Thecompany uses a perpetual inventory system. 1) Journalize the above transactions. Number your entries.
Compute cost of goods manufactured and cost of goods sold from the following amounts. Beginning of Year End of YearDirect materials inventory $22,000 $26,000Work in process inventory $38,000 $30,000Finished goods inventory $18,000 $23,000Purchases of direct materials $75,000Direct labour $82,000Manufacturing overhead $39,000
A partial listing of costs incurred at Spartech Corporation during July appears below:Direct Materials $100,000 Utilities Factory $12,000 Sales Commissions $10,000 Administrative salaries $120,000 Rent on Factory Space $40,000 Security Services for Factory $30,000 Advertising $120,000 Depreciation of Production Equipment $50,000 Direct Labor $140,000 Depreciation of Administrative Equipment $40,000 Insurance on Factory Equipment $20,000…
September 1, purchased raw materials ($120 million direct materials, $10 million indirect materials) for $130 million cash September 2, moved all the raw material into production. September 22 the company records applied overhead at the rate of 80% of direct material costs September 29, paid cash for manufacturing labor services, $220 million ($200 million direct labor and $20 million indirect labor). September 30, actual costs of other overhead items was calculated to be $76 million. September 30, all the goods charged into production were completed and moved to Finished Goods Inventory Account. September 30, 95% of the completed goods were sold for cash at a markup of 15 % of the cost before adjusting for over or under applied overhead costs. i need only journal.
Costs Incurred: Direct Labor $70,000 Purchases of raw materials $118,000 Indirect labor for factory $30,000 Maintenance, factory equipment $6,000 Advertising expense $90,000 Insurance, factory equipment $800 Sales Department salaries $50,000 Rent for factory facilities $20,000 Misc. manufacturing supplies $4,200 Depreciation, administrative office equipment $3,000 Depreciation, factory equipment $19,000 Income Taxes $40,000 Sales $500,000 Beginning End of Inventories: of Year Year Raw Materials $7,000 $15,000 Work in Process $10,000 $5,000 Finished Goods $20,000 $35,000 Compute Cost of Goods Manufactured and Cost of Goods Sold. Prepare an income statement.
1. Raw materials used to produce $100,000 (all direct materials).2. Salaries costs incurred on account: direct labour $200,000 (40,000 hours); indirect labour $60,000; selling and administrative $130,000.3. Utilities cost incurred for the factory $40,000 on credit.4. Advertising cost incurred for the year $50,000 on credit.5. Depreciation recorded for the year $30,000, of which 60% related to the factory and 40% related to selling and administrative activities.6. Other factory overhead costs incurred for the year $40,000 on account.7. Prepaid rent of $50,000 expired during the year; all of this is related to the factory.8. The company applied overhead on the basis of direct labour-hours at $6.50 per hour.9. The cost of goods manufactured for the year was $600,000.10. Goods that cost $600,000 according to the job cost sheets were sold on account, cost is two-third of the sales. a) Prepare journal entries for the company. Write your entries with the numbers 1-10. b) Is overhead…
1. Raw materials used to produce $100,000 (all direct materials).2. Salaries costs incurred on account: direct labour $200,000 (40,000 hours); indirect labour $60,000; selling and administrative $130,000.3. Utilities cost incurred for the factory $40,000 on credit.4. Advertising cost incurred for the year $50,000 on credit.5. Depreciation recorded for the year $30,000, of which 60% related to the factory and 40% related to selling and administrative activities.6. Other factory overhead costs incurred for the year $40,000 on account.7. Prepaid rent of $50,000 expired during the year; all of this is related to the factory.8. The company applied overhead on the basis of direct labour-hours at $6.50 per hour.9. The cost of goods manufactured for the year was $600,000.10. Goods that cost $600,000 according to the job cost sheets were sold on account, cost is two-third of the sales. a) Prepare journal entries for the company. Write your entries with the numbers 1-10. b) Is overhead…
Selected data for Lemon Grass, Inc. for the year are provided below: Factory Utilities $2,100 Indirect Materials Used 32,500 Direct Materials Used 309,000 Property Taxes on Factory Building 5,400 Sales Commissions 83,000 Indirect Labor Incurred 20,000 Direct Labor Incurred 145,000 Depreciation on Factory Equipment 6,800 What is the total manufacturing overhead? A. $52,500 B. $14,300 C. $454,000 D.
Compute cost of goods manufactured and cost of goods sold from the followingamounts. Beginning of Year End of YearDirect materials inventory $22,000 $26,000Work in process inventory $38,000 $30,000Finished goods inventory $18,000 $23,000Purchases of direct materials $75,000Direct labour $82,000Manufacturing overhead $39,000
Record the following journal entries for turner Company. a. Purchased materials on account , $11,000 b. Used $8,000 in direct materials and $700 in indirect materials in production c. Incurred $9.000 in labor costs, of which 70% was direct labor.