Overview of general-ledger relationships. (30-40 minutes)

Budenmayer, BV, is a small machine shop that uses highly skilled labour and a job-costing system (using normal costing). The total debits and credits in certain accounts just before year-end are as follows: lo1 

ADDITIONAL INFORMATION Manufacturing overhead has been allocated as a percentage of direct manufacturing labour costs through 30 December Direct materials purchased during 1999 were Dfl 85,000.
There were no returns to suppliers.
Direct manufacturing labour costs during 1999 totalled Dfl 150,000, not including the 31 December working day described previously.
REQUIRED 1. Calculate the stock (31 December 1998) of Materials Control, Work-in- Progress Control and Finished Goods Control. Show T-accounts.

2. Prepare all adjusting and closing journal entries for the preceding accounts.
Assume that all under- or overallocated manufacturing overhead is closed directly to Cost of Goods Sold.
3. Calculate the ending stock (41 December 1999), after adjustments and closing, of Materials Control, Work-in-Progress Control and Finished Goods Control.

Transcribed Image Text:

Materials Control Work-in-Progress Control 30 DECEMBER 1999 TOTAL DEBITS TOTAL CREDITS Dil 100,000 Dfl 70,000 320,000 85,000 325.000 300.000 305.000 300,000 90,000 Manufacturing Department Overhead Control Finished Goods Control Cost of Goods Sold Manufacturing Overhead Allocated All materials purchased are for direct materials. Note that 'total debits' in the stock accounts would include beginning stock balances, if any. The preceding accounts do not include the following: a. The manufacturing labour costs recapitulation for the December 31 working day: direct manufacturing labour, Dfl 5,000 and indirect manufacturing labour, Dfl 1,000. b. Miscellaneous manufacturing overhead incurred on 30 December and 31 December: Dfl 1,000.