ABC Company had the following beginning balances: Raw materials, $1,000. Work in process inventory, $4,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Company had the following beginning balances: Raw materials, $1,000. • Work in process inventory, $4,000 • Finished goods inventory, $6,000 • Accounts payable, $500. During the month, ABC had the following transactions: a. Raw materials purchased on account, $10,000. b. Raw materials used in production, $7,000 (S2,000 was indirect materials). c. Direct labor during the month, $9,000 (workers are paid $9 an hour). d. Indirect labor during the month was $4,000. e. Accrued factory rent for the month, $5,000. f. Accrued factory insurance during the month, $1,000. g. Factory equipment depreciation for the month was $2,000. h. "Factory overhead was applied to work in process. Work in process completed and transferred to finished goods, $30,000. i Cost of goods sold, $33,000. Overapplied/underapplied manufacturing overhead was transferred to cost of goods sold. Additional information: • Manufacturing overhead is allocated based on direct labor hours. Estimated manufacturing overhead for the month is $15,000, and estimated direct labor hou are 1,200 hours. Required: 1. Post transactions a-k above to t-accounts. Find the ending balance in each account and spei L journal entry ABC Company had the following beginning balances: Raw materials, $1,000. • Work in process inventory, $4,000 • Finished goods inventory, $6,000 • Accounts payable, $500. During the month, ABC had the following transactions: a. Raw materials purchased on account, $10,000. b. Raw materials used in production, $7,000 (S2,000 was indirect materials). c. Direct labor during the month, $9,000 (workers are paid $9 an hour). d. Indirect labor during the month was $4,000. e. Accrued factory rent for the month, $5,000. f. Accrued factory insurance during the month, $1,000. g. Factory equipment depreciation for the month was $2,000. h. "Factory overhead was applied to work in process. Work in process completed and transferred to finished goods, $30,000. i Cost of goods sold, $33,000. Overapplied/underapplied manufacturing overhead was transferred to cost of goods sold. Additional information: • Manufacturing overhead is allocated based on direct labor hours. Estimated manufacturing overhead for the month is $15,000, and estimated direct labor hou are 1,200 hours. Required: 1. Post transactions a-k above to t-accounts. Find the ending balance in each account and spei L journal entry
Expert Answer:
Answer rating: 100% (QA)
Raw materials balance sheet assets Work in Process Bal... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old
Posted Date:
Students also viewed these general management questions
-
7. Find the centroid of the region bounded by the graphs of the inequalities y y 0, x 4, x 4. 3 x+9 "
-
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $6...
-
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.60 per machine-hour was based on a...
-
Two long wires are placed in the x-y plane, as shown in the figure. Each wire carries a current of 1.5 A, directed out of the page. If the distance d = 3.0 m, what is the net magnetic field due to...
-
Find the critical region and value(s) for Ha: = 34 And a = 0.02 .
-
Who is a process owner?
-
Indicate the effect of each of the following transactions upon the total assets of a business by using one of the appropriate phrases as below: a. Owner contributed a computer to the business. b....
-
The Kelly Services, Inc., and Subsidiaries statements of earnings from its 2008 annual report are presented in Exhibit 5-4. Required a. Using the statements of earnings, prepare a vertical...
-
Description Debit Credit Common Shares 5.040.000 Contributed Surplus 545.000 Retained Earings 7.015.000 Cash 12.600.000 Place only one "T" in each row below indicating the impact of the share...
-
In 1879, A.A. Michelson measured the velocity of light in air using a modification of a method proposed by the French physicist Foucault. Twenty of these measurements are in table 6E.27 (the value...
-
Whirly Corporation's contribution format income statement forthe most recent month is shown below: Per Unit $ 34.00 18.00 $16.00 Sales (7,100 units) Variable expenses Contribution marginFixed expen 1...
-
Joshua is traveling to Europe this summer. He wants to take the appropriate precautions to minimize any losses should there be any circumstances that would affect his trip. Joshua's mom has been ill,...
-
A 5-year Treasury bond with a coupon rate of 5% per year (semi-annual coupons) currently has a quoted price of $100 in the Wall Street Journal. Assuming the last coupon was 60 days ago and there are...
-
on january 1 , year 1 denver company issued bonds with a face calue of 6 1 , 0 0 0 a stated rate of intrest of 7 % and a 5 year term to maturity the bonds were sold at 1 0 3 . 5 denver uses the...
-
Explain the ratio analysis market value. discuss P/E market cap and unrecord assets effet the value of the company. The company is Kimberly Clark corporation. ?
-
A second option is to purchase the machine outright. In fact, after the lease expires, you are considering buying your firm's next copier. (1) You need to obtain a minimum of two offers before buying...
-
The following below are independent situations 6 Assume for Year 2 that 20,000 options are associated with employees who left the company in Year 2. Calculate the revised compensation expense for...
-
From a medical tourist perspective, compare Shouldice with the traditional hospital in terms of the key factors of competition. Using Table 15-3, why would Shouldice attract patients from outside the...
-
Boise Fabrications, Inc., produces composite component parts for wheelchairs. The company recently implemented an ABC system for three of its products and is interested in evaluating its...
-
The following quality cost report came from the records of Vargas Company. Required a. Explain the strategy that Vargas Company initiated to control its quality costs. b. Indicate whether the...
-
The following financial statements model shows the effects of recognizing depreciation in two different circumstances. One circumstance represents recognizing depreciation on a machine used in a...
-
Great Pyramids. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals...
-
Bank for International Settlements. The Bank for International Settlements (BIS) publishes a wealth of effective exchange rate indices. Use its database and analyses to determine the degree to which...
-
Federal Reserve Statistical Release. The United States Federal Reserve provides daily updates of the value of the major currencies traded against the U.S. dollar on its Web site. Use the Feds Web...
Study smarter with the SolutionInn App