School Stars produces stars for elementary teachers to reward their students. School Stars trial balance on June

School Stars produces stars for elementary teachers to reward their students. School Stars’ trial balance on June 1 follows:

June 1 balances in the subsidiary ledgers were as follows:
• Raw Materials Inventory subsidiary ledger: Paper, $ 4,300; indirect materials, $ 1,900
• Work-in-Process Inventory subsidiary ledger: Job 120, $ 43,000; Job 121, $ 0
• Finished Goods Inventory subsidiary ledger: Large Stars, $ 9,300; Small Stars, $ 12,000 June transactions are summarized as follows:
a. Collections on account, $ 155,000.
b. Selling and administrative expenses incurred and paid $ 22,000.
c. Payments on account, $ 37,000.
d. Materials purchases on account: Paper, $ 26,600; indirect materials, $ 4,200.
e. Materials requisitioned and used in production:
Job 120: Paper; $ 900
Job 121: Paper, $ 7,850
Indirect materials, $ 1,600
f. Wages incurred during June, $ 43,000. Labor time records for the month: Job 120, $ 4,800; Job 121: $ 18,500; indirect labor, $ 19,700.
g. Wages paid in June include the balance in Wages Payable at May 31 plus $ 39,900 of wages incurred during June.
h. Depreciation on plant and equipment, $ 2,700.
i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 90% of direct labor cost.
j. Jobs completed during the month: Job 120, 600,000 Large Stars at a total cost of $ 53,020.
k. Sales on account: all of Job 120 for $ 133,000.
l. Adjusted for overallocated or underallocated manufacturing overhead.

Requirements
1. Journalize the transactions for the company.
2. Open T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger. Insert each account balance as given, and use the reference Bal. Post the journal entries to the T-accounts using the trans-action letters as a reference.
3. Prepare a trial balance at June 30, 2014.
4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.
5. Prepare an income statement for the month ofJune.

Transcribed Image Text:

SCHOOL STARS Trial Balance June 1, 2014 Balance Account Title Cash Acccunts Receivable Debit S 17,000 170,000 Raw Materials 43,000 21.300 250,000 Work-in-Process Finlshed Goods Plant Asset Accumulated Depreclation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Oveshead Selling and Administrative Experses 71,000 133,000 144,000 156,200 507,500507,500