Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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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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Students have asked these similar questions
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.
Transaction Analysis
Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below:
a. Raw materials purchased on account, $100,000.
b. Raw materials used in production, $78,000 direct materials, and $16,000 indirect materials.
c. Sales commissions paid in cash, $45,000.
d. Depreciation was recorded for the month. $60,000 (65% related to factory equipment, and the remainder related to selling and administrative equipment).
e. Sales for the month, $450,000 (70% cash sales and the remainder were sales on account).
f. Factory utilities paid in cash, $12,000.
g. Applied $138,000 of manufacturing overhead to production during the month.
h. Various jobs costing a total of $190,000 were completed during the month and transferred to Finished Goods.
i. Cash receipts from customers who had previously purchased on credit, $115,000.
j. Various completed jobs costing a total of $220,000 were sold to customers.
k. Cash paid to raw material…
b. Replacement method
c. Flux method
P4-2 Hakone Company determined P284,200 payroll for the week consisting of P240,000
eamed by 80 direct laborers and P44,200 eamed by 20 indirect laborers. The total factory
bonuses to be paid at year-end is estimated at P980,000, All factory workers receive a
three-week paid vacation and 10 paid holidays.
Required: Prepare the journal entries to: (a) distribute the weekly payroll and to (b) accrue
the bonus, vacation, and holiday pay.
CHAPTER 4 Accounting for Labor
139
Seadwith Candee
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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