Manufacturing cost for one accounting cycle The following trial balance was taken from the records of Wheaton

Question:

Manufacturing cost for one accounting cycle The following trial balance was taken from the records of Wheaton Manufacturing Company at the beginning of 2012.

$ 9,400 Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment A

Transactions for the Accounting Period
1. Wheaton purchased $5,700 of direct raw materials and $300 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,400 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
2. By the end of the year, $5,250 of the accounts payable had been paid in cash.
3. During the year, direct labor amounted to 950 hours recorded in the Wages Payable account at $10.50 per hour.
4. By the end of the year, $9,000 of wages payable had been paid in cash.
5. At the beginning of the year, the company expected overhead cost for the period to be $6,300 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 950 for the year.
6. Selling and administrative expenses for the year amounted to $900 paid in cash.
7. Utilities and rent for production facilities amounted to $4,650 paid in cash.
8. Depreciation on the plant and equipment used in production amounted to $1,500.
9. There was $12,000 of goods completed during the year.
10. There was $12,750 of finished goods inventory sold for $18,000 cash.
11. A count of the production supplies revealed a balance of $89 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant.
Required
a. Open T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts. (Note: Open new T-accounts as needed.)
b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...