Managerial Accounting
16th Edition
ISBN: 9781259995484
Author: Ray Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 3.A, Problem 3E
EXERCISE 3A-3 Transaction Analysis LO3-5
Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below:
- Raw materials purchased on account, $100,000.
- Raw materials used in production, $78,000 direct materials, and $16,000 indirect materials.
- Sales commissions paid in cash, $45,000.
Depreciation was recorded for the month, $60,000 (65% related to factory equipment, and the remainder related to selling and administrative equipment).- Sales for the month, $450,000 (70% cash sales and the remainder were sales on account).
- Factory utilities paid in cash, $12,000.
- Applied $13 8,000 of manufacturing
overhead to production during the month. - Various
jobs costing a total of $190,000 were completed during the month and transferred to Finished Goods. - Cash receipts from customers who had previously purchased on credit, $ 15,000.
- Various completed jobs costing a total of $220,000 were sold to customers.
- Cash paid to raw material suppliers, $90,000.
Required:
The table shown below includes only one account from Dixon Company's balance sheet-Retained Earnings. For each of the above transactions, select “No” if it would not affect Retained Earnings. Conversely if the transaction would affect Retained Earnings, then record the amount of the increase or (decrease) to this account under the “Yes” column.
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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.
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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))
..
5
Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
Raw Materials
Work in Process
$ 30,000
45,000
14,000
Finished Goods
Return to question
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production
department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in
Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed
and transferred to Finished Goods ventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and
administrative expenses amounted to $36,000.
Required
a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b1. Prepare a schedule of cost of goods manufactured and sold.
b2. Prepare an income statement.
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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