Information on Kwon Manufacturing's activities for its first month of operations follows: Purchased $100,300 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,500 Job 202 23,900 Total direct materials 72,400 Indirect materials 8,920 Total materials used $ 81,320 Time tickets show the following labor used for the month. Job 201 $ 39,500 Job 202 12,900 Total direct labor 52,400 Indirect labor 24,500 Total labor used $ 76,900 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 32,300 Rent on factory building (payable) 530 Factory utilities (payable) 830 Expired factory insurance 3,300 Total other factory overhead costs $ 36,960 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
Information on Kwon Manufacturing's activities for its first month of operations follows: Purchased $100,300 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,500 Job 202 23,900 Total direct materials 72,400 Indirect materials 8,920 Total materials used $ 81,320 Time tickets show the following labor used for the month. Job 201 $ 39,500 Job 202 12,900 Total direct labor 52,400 Indirect labor 24,500 Total labor used $ 76,900 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 32,300 Rent on factory building (payable) 530 Factory utilities (payable) 830 Expired factory insurance 3,300 Total other factory overhead costs $ 36,960 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
03.
Transcribed Image Text:Information on Kwon Manufacturing's activities for its first month of operations follows: Purchased $100,300 of raw
materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,500 Job 202
23,900 Total direct materials 72,400 Indirect materials 8,920 Total materials used $81,320 Time tickets show the following
labor used for the month. Job 201 $ 39,500 Job 202 12,900 Total direct labor 52,400 Indirect labor 24,500 Total labor used
$ 76,900 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials
cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,660 on credit. (2) Record cost of goods
sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $
32,300 Rent on factory building (payable) 530 Factory utilities (payable) 830 Expired factory insurance 3,300 Total other
factory overhead costs $ 36,960 Post entries for transactions a through g to the T-accounts. Each of T-accounts started the
month with a zero balance.
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