P20-5A=Link Back to Chapters 2 and 19. Citronix Systems produces components for digital network routers. Initially the
Question:
P20-5A=Link Back to Chapters 2 and 19. Citronix Systems produces components for digital network routers. Initially the company manufactured the parts for its own routers, but it gradually began selling them to other companies as well. April I balances in the subsidiary ledgers were Materials ledger: circuit boards. $1.580; electronic parts, $1.960: indirect materials. $430. Work in process ledger: Job 145, $35.880. Finished goods ledger: relays. $5.310: switches. $8.870. Citronix's trial balance on April 1 follows on page 383. April transactions are summarized as follows:
a. Collections on account. $137,470.
b. Marketing and general expenses incurred and paid. $27.470.
c. Payments on account, $36.040.
d. Materials purchased on credit: circuit boards. $6.540: electronic parts, $15.830: indirect materials. $3.590. CITRONIX SYSTEMS Trial Balance Cash Accounts receivable. Inventories: Materials. Work in process. Finished goods. Plant assets. Accumulated depreciation Accounts payable. Wages payable. Common stock Retained earnings Sales revenues. Cost of goods sold.. April 1, 20XX 19.160 74.290 Manufacturing wages. Manufacturing overhead Marketing and general expenses 3,970 35,880 14,180 244,570. $ 98,900 23.960 3.670 120,000 145,520 $392.050 $392.050
e. Materials used in production (requisitioned): Job 145: circuit boards, $340. Job 146: circuit boards, $3,570; electronic parts, $5,980. Job 147: circuit boards. $1,970: electronic parts, $4.730. Indirect materials. $1.580.
f. Manufacturing wages incurred during April. $32.430, of which $30.520 was paid. Wages payable at March 31 were paid during April. $3.670. g. Labor time records for the month: Job 145. $3,500: Job 146. $11.050; Job 147. $9.940: indirect labor, $7,940. h. Other actual miscellaneous manufacturing overhead costs incurred on account, $4,630. i. Depreciation on plant and equipment (not included in item h above), $3.450. j. Manufacturing overhead was allocated at the predetermined rate of 70% of direct labor cost. k. Jobs completed during the month: Job 145, 400 relays at total cost of $42,170; Job 146, 1. Credit sales on account: all of Job 145 for $97.640 (cost $42,170); Job 146, 120 switches for $35,100 (cost. $17.001). m. Closed the Manufacturing Overhead account to Cost of Goods Sold. Required 1. Open T-accounts for the general ledger, the materials ledger, the work in process ledger, and the finished goods ledger. Insert each account balance as given, and use the reference Bal. 2. Record the April transactions directly in the accounts, using the letters as references. Citronix uses a perpetual inventory system. 3. Prepare a trial balance at April 30. 4. Use the work in process T-account to prepare a schedule of cost of goods manufactured for the month of April. 5. Prepare an income statement for the month of April. (Hint: In transaction m you closed any under/overallocated manufacturing overhead to Cost of Goods Sold. In the income statement, show this correction as an adjustment to Cost of Goods Sold. If manufacturing overhead is underallocated, the adjustment will increase Cost of Goods Sold. If overhead is overallocated, the adjustment will reduce Cost of Goods Sold.)
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones