1.Post the journal entries to the accounts, setting up any new ledger accounts necessary. Only controlling accounts are to be maintained; however, show the calculation for the cost of materials used. - Does this mean I need to update my T-accounts? What else would I need to do?

2.Prepare statement of cost of goods manufactured for October.

Problem 1

The Pullman Inc, a segment of Sysco Holdings manufactures chain hoists. The raw materials inventories on hand on October 1 were as follows:

The balances in the ledger accounts on October 1 were as follows:

Transactions during October were as follows:

A.Payroll recorded during the month: direct labor, $28,000; indirect labor, $3,000.

B.Factory supplies purchased for cash, $1,000. (Use a separate inventory account, Factory Supplies.)

C.Materials purchased on account: chain-4,000 lb, $8,800; pulleys-2,000 sets, $10,200; steel plates-5,000 units, $3,000.

D.Sales on account for the month, $126,375.

E.Accounts receivable collected, $72,500.

F.Materials used during October (FIFO costing): chain, 14,000 lb; pulleys, 4,400 sets; bolts and taps, 4,000 lb; steel plates, 3,800 units.

G.Payroll paid, $31,000.

H.Factory supplies on hand, October 31, $350.

I.Factory heat, light, and power costs for October, $3,000 (not yet paid).

J.Office salaries paid, $6,000.

K.Advertising paid, $2,000.

L.Factory superintendence paid, $1,800.

M.Expired insurance-on office equipment, $100; on factory machinery, $300.

N.Factory rent paid, $2,000.

O.Depreciation on office equipment, $400; on office furniture, $180; on machinery, $1,200.

P.Factory overhead charged to jobs, $11,950.

Q.Work in Process, October 31, $31,000.

R.Cost of goods sold during the month, $84,250.

S.Accounts payable paid, $33,750.