Managerial Accounting
16th Edition
ISBN: 9781259995484
Author: Ray Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3.A, Problem 2E
EXERCISE 3A-2 Transaction Analysis LO3-5
Adams Company is a manufacturer that completed numerous transactions during the month, some of which are show below:
Manufacturing overhead costs incurred on account, $80,000.- Depreciation was recorded for the month, $35,000 (80°o related to factory equipment, and the remainder related to selling and administrative equipment).
- Prepaid insurance expired during the month, $2:500 (75% related to production, and 25° o related to selling and administration).
- Applied $115,000 of manufacturing overhead to production during the month.
- Closed $5,125 of overapplied overhead to cost of goods sold.
Required:
The table shown below includes a subset of Adams Company’s balance sheet accounts. Record each of the above transactions using the accounts that are given. If a transaction increases an account balance, then record the amount as a positive number. If it decreases an account balance, then record the amount in parentheses.
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Transaction Analysis
Adams Company is a manufacturer that completed numerous transactions during the month, some of which are shown below:
a. Manufacturing overhead costs incurred on account, $80,000.
b. Depreciation was recorded for the month, $35,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
c. Prepaid insurance expired during the month, $2,500 (75% related to production, and 25% related to selling and administration).
d. Applied $115,000 of manufacturing overhead to production during the month.
e. Closed $5,125 of overapplied overhead to cost of goods sold.
Required:
The table shown below includes a subset of Adams Company’s balance sheet accounts. Record each of the above transactions using the accounts that are given. If a transaction increases an account balance, then record the amount as a positive number. If it decreases an account balance, then record the amount in parentheses.
Problem 6
The Protect Production Company presents the following selected general ledger accounts
showing balances at October 1, 2017:
Cash
P 40,000
Finished Goods
592,000
Work in Process
Raw materials
Prepaid Insurance
Accumulated Depreciation
Accounts Payable
164,000
128,000
4,000
280,000
108,000
Balances at October 31, 2017 include:
Accrued payroll
Finished goods
P 12,000
608,000
188,000
120,000
Work in Process
Raw Materials
A summary of transactions for the month of October follows:
a. Cash sales
b. Raw materials purchased on account
c. Direct materials used
P420,000
168,000
156,000
64,000
1,200
d. Direct Labor
e. Factory insurance expired
f. Depreciation for factory equipment
g. Factory utility service on account
h. Accounts payable paid
Factory payroll paid
6,800
12,000
196,000
88,000
i.
Required:
16. Indirect materials used.
17. Indirect labor
18. Total factory overhead
19. Cost of goods manufactured
20. Cost of goods sold.
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Current Attempt in Progress
Marigold Corporation incurred the following transactions.
1.
2.
3.
4.
5.
6.
7.
8.
1
Purchased raw materials on account $49,100.
Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that
$9,900 was classified as indirect materials.
Factory labor costs incurred were $61,900.
Time tickets indicated that $55,300 was direct labor and $6,600 was indirect labor.
Manufacturing overhead costs incurred on account were $81,900.
Manufacturing overhead was applied at the rate of 160% of direct labor cost.
Goods costing $93,900 were completed and transferred to finished goods.
Finished goods costing $76,400 to manufacture were sold.
Record the transactions. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45))
..
Chapter 3 Solutions
Managerial Accounting
Ch. 3.A - EXERCISE 3A-1 Transaction Analysis LO3-5 Carmen...Ch. 3.A - EXERCISE 3A-2 Transaction Analysis LO3-5 Adams...Ch. 3.A - EXERCISE 3A-3 Transaction Analysis LO3-5 Dixon...Ch. 3.A - PROBLEM 3A-4 Transaction Analysis LO3-5 Morrison...Ch. 3.A - PROBLEM 3A-5 Transaction Analysis LO3-5 Star...Ch. 3.A -
PROBLEM 3A-6 Transaction Analysis LO3-5
Brooks...Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - What is underapplied overhead Overapplied...Ch. 3 - 3-4 Provide two reasons why overhead might be...
Ch. 3 - Prob. 5QCh. 3 - How do you compute the raw materials used in...Ch. 3 - Prob. 7QCh. 3 - How do you compute the cost of goods manufactured?Ch. 3 - Prob. 9QCh. 3 - Prob. 10QCh. 3 - Prob. 1AECh. 3 - Prob. 2AECh. 3 - Prob. 3AECh. 3 - Prob. 4AECh. 3 - Prob. 1F15Ch. 3 - Prob. 2F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 4F15Ch. 3 - Prob. 5F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 7F15Ch. 3 - Prob. 8F15Ch. 3 - Prob. 9F15Ch. 3 - Prob. 10F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 12F15Ch. 3 - Prob. 13F15Ch. 3 - Prob. 14F15Ch. 3 - Prob. 15F15Ch. 3 - EXERCISE 3-1 Prepare Journal Entries LO3-1 Lamed...Ch. 3 - Prob. 2ECh. 3 - EXERCISE 3-3 Schedules of Cost of Goods...Ch. 3 - EXERCISE 3-4 Underapplied and Overapplied Overhead...Ch. 3 - Prob. 5ECh. 3 - EXERCISE 3-6 Schedules of Cost of Goods...Ch. 3 - (
$
15,000...Ch. 3 - EXERCISE 3-8 Applying Overhead: Journal Entries;...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 -
PROBLEM 3-11: T-Account Analysis of Cost Flows...Ch. 3 - Prob. 12PCh. 3 - PROBLEM 3-13 Schedules of Cost of Goods...Ch. 3 - Prob. 14PCh. 3 -
PROBLEM 3-15 Journal Entries; T-Accounts;...Ch. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18C
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