Accounting, fill in the blanks

Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Required: 1. Classify the following manufacturing costs of Business Solutions by behavior and traceability. Product Costs 1. Monthly flat fee to clean workshop 2. Laminate coverings for desktops 3. Taxes on assembly workshop 4. Glue to assemble workstation component parts 5. Wages of desk assembler 6. Electricity for workshop 7. Depreciation on tools Cost by Behavior Cost by Traceability Direct materials: $2,400 Factory overhead: $540 Direct labor: $900 Beginning goods in process: none (December 31, 2011) Ending goods in process: $570 (January 31, 2012) Beginning finished goods inventory: none (December 31, 2011) Ending finished goods inventory: $310 (January 31, 2012) 2. Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Business Solutions Manufacturing Statement For Month Ended January 31, 2012 $ Total manufacturing costs Total cost of goods in process $ 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Business Solutions Partial Income Statement For Month Ended January 31, 2012 $ Cost of goods sold $ 2. Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2 [The following information applies to the questions displayed below.] Using the following data, Rossin gs Compa ny Canyon Compa ny Begin ning finished goods invento ry Begin ning goods in process invento ry Begin ning raw materia ls invento ry Rental cost on factory equipm ent Direct labor Endin g finished goods invento ry Endin g goods in $ 15,000 $ 23,500 18,000 25,000 9,500 10,000 28,000 22,500 17,000 41,000 22,000 13,500 28,000 21,000 process invento ry Endin g raw materia ls invento ry Factor y utilities Factor y supplie s used Gener al and adminis trative expens es Indire ct labor Repair s Factory equipm ent Raw materia ls purcha ses Sales salaries 6,900 10,300 13,000 15,000 11,300 8,300 25,000 43,000 3,250 9,660 6,780 3,500 26,000 53,000 44,000 35,000 references 1. value: 20.00 points Exercise 14-9 Part 1 1. Compute the cost of goods manufactured for both Canyon Company and Rossings Company. (Omit the "$" sign in your response.) Canyon Company Cost of goods manufactured Rossings Company $ $ rev: 03-04-11 check my workeBook Links (2)View Hint #1references 2. value: 20.00 points Exercise 14-9 Part 2 2. Compute cost of goods sold for both Canyon Company and Rossings Company. (Omit the "$" sign in your response.) Cost of goods sold Canyon Company $ Rossings Company $ Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $519 each. (Assume there is no ending inventory in the year 2011.) Costs 1. Plastic for casing$21,000 Wages of assembly workers 2. $88,000. Property taxes on factory 3. $5,000 Accounting staff salaries 4. $35,000 Drum stands (1,000 stands 5. outsourced)$28,000 Rent cost of equipment for 6. sales staff$36,000 Upper management salaries 7. $195,000 Annual flat fee for 8.maintenance service $18,000 Sales commissions$22 9. per unit Machinery depreciation 10. $46,000 references 3. value: 20.00 points Problem 14-2A Part 1 Required: 1. Classify each cost and its amount as (a) either fixed or variable and (b) either product or period. (The first cost is completed as an example.) (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Cost by Behavior Costs Cost by Function Variabl e Plastic for 1. casing Wages of 2.assembly workers Property 3.taxes on factory Accounting 4. staff salaries Drum 5. stands Rent cost of 6.equipment for sales staff Upper 7.managemen t salaries Annual flat fee 8.paid for mai ntenance service Sales 9.commission s Machinery 10. depreciation $ Produc t Fixed 21,000 Period $ 21,000 $ $ check my workeBook Links (2)references 4. value: 20.00 points Problem 14-2A Part 2 2. Compute the manufacturing cost per drum set. (Omit the "$" sign in your response.) Manufacturing cost per drum set $ Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31, 2010, the company had (a) 500 pairs of boots in finished goods inventory and (b) 1,700 heels at a cost of $11 each in raw materials inventory. During 2011, the company purchased 38,000 additional heels at $11 each and manufactured 16,400 pairs of boots. Required: 1. Determine the unit and dollar amounts of raw materials inventory in heels at December 31, 2011. (Omit the "$" sign in your response.) Ending inventory units Ending inventory value $ Multiplex Corporation has requested bids from several architects to design its new corporate headquarters. Friesen Architects is one of the firms bidding on the job. Friesen estimates that the job will require the following direct labor. Estim Labor ated Hours Arch itects Staff Cleri cal Hourly Rate 100 $ 300 400 60 600 10 Friesen applies overhead to jobs at 160% of direct labor cost. Friesen would like to earn at least $89,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $169,000 and $178,000 for the job. 1. What is Friesen's estimated cost of the architectural job? (Omit the "$" sign in your response.) Estimated cost $ 2. What is Friesen's estimated selling price? (Omit the "$" sign in your response.) Estimated selling price $ The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system. April 30 Inventories Raw materials Goods in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid May 31 $ 42,000 $ 52,000 9,600 21,500 66,000 37,600 192,000 390,000 with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermi ned overhead rate based on direct labor cost 10,000 80,000 103,000 1,270,000 65% 1. Raw materials purchases for cash. 2. Direct materials usage. 3. Indirect materials usage. Prepare journal entries for the above events for the month of May. (Omit the "$" sign in your response.) Events 1. General Journal Debit 2. 3. JK Concert Promotio ns Actual indirect materials costs Actual indirect labor costs Other overhea d costs Overhe ad applied EL Home Builders $ 11,500 $ 6,800 56,100 47,100 16,700 49,700 95,100 108,900 Credit Record the journal entry to close overapplied or underapplied factory overhead to Cost of Goods Sold for each of the independent cases above. (Omit the "$" sign in your response.) General Journal JK Concert Promotions Debit Credit EL Home Builders The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system. April 30 Inventories Raw materials Goods in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermi ned overhead rate based on direct labor cost May 31 $ 41,000 $ 46,000 10,800 17,500 59,000 37,600 187,000 415,000 13,000 71,000 100,500 1,270,000 65% 1. Factory payroll costs in cash. 2. Direct labor usage. 3. Indirect labor usage. Prepare journal entries for the above events for the month of May. (Omit the "$" sign in your response.) Events 1. General Journal Debit Credit 2. 3. Winfrey Co.'s March 31 inventory of raw materials is $120,000. Raw materials purchases in April are $490,000, and factory payroll cost in April is $249,000. Overhead costs incurred in April are: indirect materials, $21,000; indirect labor, $16,000; factory rent, $19,000; factory utilities, $12,000; and factory equipment depreciation, $40,450. The predetermined overhead rate is 45% of direct labor cost. Job 306 is sold for $380,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Bala nces on March 31 Dir ect materi als Dir ect labor Ap plied overh ead Cost s during April Dir ect materi als Dir ect labor Ap plied overh Job 307 Job 308 $ 11,00 0 $ 17,00 0 20,00 0 11,00 0 9,000 4,950 105,0 00 160,0 00 42,00 0 71,00 0 120,0 00 ? ? ? $ 75,00 0 ead Stat Finis Finish us on hed ed April (unsol (sold) 30 d) In process Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response. ) 306 Beginning goods in process (From March) For April Direct materials Direct labor Applied overhead 307 308 April Total $ $ $ $ $ $ $ $ Total costs added in April Total costs a. Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.) b. Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory. c. Transfer of Jobs 306 and 307 to the Finished Goods Inventory. d. Cost of goods sold for Job 306. e. Revenue from the sale of Job 306. f. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 2. Prepare journal entries for the month of April to record the above transactions. (Omit the "$" sign in your response.) a. General Journal To record materials purchases. To record factory payroll. To record indirect materials. Debit Credit To record indirect labor. To record factory rent. To record factory utilities. To record depreciation for factory equipment. b. To assign direct materials to jobs. To assign direct labor to jobs. To apply overhead to jobs. c. To record jobs completed. d. To record cost of sale of job. e. f. To record sale of job. To assign Over/Underapplied overhead. Prepare a manufacturing statement for April (use a single line presentation for direct materials and show the details of overhead cost.) (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) WINFREY COMPANY Manufacturing Statement For Month Ended April 30 $ Factory overhead $ Total manufacturing costs Total cost of goods in process Cost of goods manufactured $ Compute gross profit for April. (Omit the "$" sign in your response.) Gross profit $ 4.2 Show how to present the inventories on the April 30 balance sheet. (Omit the "$" sign in your response.) Inventories Raw materials Goods in process (Job 308) Finished goods (Job 307) Total inventories $ $ Thai Bay's computer system generated the following trial balance on December 31, 2011. The company's manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts. Debit Cash $ Accounts receivable Raw materials inventory Goods in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings Sales Cost of goods sold Factory payroll Factory overhead Operatin g expenses Totals $ Credit 46,000 40,000 25,000 0 15,000 5,000 $ 11,200 14,200 50,000 94,000 148,600 108,000 16,000 24,000 39,000 318,000 $ 318,000 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. Materials requisition 213010: Materials $ $ direct 4,900materials to Job 402 7,300 direct requisition 213011: Materials requisition 213012: Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: materials to Job 404 $ $ $ $ indirect 2,100 materials direct labor 8,000 to Job 402 direct labor 3,000 to Job 404 5,000 indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 100% of direct labor cost. a. Direct materials costs to Goods in Process Inventory. b. Direct labor costs to Goods in Process Inventory. c. Overhead costs to Goods in Process Inventory. d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account. Required: 1. Prepare journal entries to assign the above costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit a. b. c. d. e. Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. (Input all amounts as positive values. Omit the "$" sign in your response.) $ 2.2 Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31 Prepare a revised trial balance. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities (in order of their liquidity), Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) THAI BAY COMPANY Trial Balance December 31, 2011 Debit Credit $ $ Totals $ $ Prepare an income statement for year 2011. (Amounts to be deducted and net loss amount should be indicated with minus sign. Omit the "$" sign in your response.) THAI BAY COMPANY Income Statement For Year Ended December 31, 2011 $ $ Prepare a balance sheet as of December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THAI BAY COMPANY Balance Sheet December 31, 2011 Assets $ Inventories $ Total Assets $ Liabilities and Equity $ Total Liabilities Total Stockholders' Equity Total Liabilities and Equity $ Westin Watercraft's predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company's production activities during May 2011 follows. a. Purchased raw materials on credit, $240,000. b. Paid $127,500 cash for factory wages. c. Paid $15,750 cash to a computer consultant to reprogram factory equipment. d. Materials requisitions record use of the following materials for the month. Job 136 $ 50,000 Job 137 33,000 Job 138 20,200 Job 139 22,600 Job 140 7,400 Total direct materials Indirect materials Total materials used 133,200 20,500 $ 153,700 e. Time tickets record use of the following labor for the month. Job 136 $ 12,100 Job 137 10,500 Job 138 37,700 Job 139 39,400 Job 140 3,800 Total direct labor Indirect labor 103,500 24,000 Total $ 127,500 f. Applied overhead to Jobs 136, 138, and 139. g. Transferred Jobs 136, 138, and 139 to Finished Goods. h. Sold Jobs 136 and 138 on credit at a total price of $535,000. i. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciatio n of factory $ building Depreciatio n of factory equipment Expired factory insurance Accrued property taxes payable 68,500 38,500 10,000 35,500 j. Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.) Job No. 136 Materials Job No. 137 Job No. 138 Job No. 139 Job No. 140 $ $ $ $ $ $ $ $ $ $ Labor Overhead Total cost Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. ) General Journal Debit Credit a. b. c. d. e. f. g. h. i. j. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these T- accounts and determine the balance of each account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) GENERAL LEDGER ACCOUNTS Raw Materials Inventory Bal. Goods in Process Inventory Bal. Finished Goods Inventory Bal. Factory Payroll Bal. Factory Overhead Bal. Cost of Goods Sold Bal. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.) Reports of Job Costs Goods in Process Inventory $ Balance $ Finished Goods Inventory $ Balance Cost of Goods Sold $ $ Balance $ The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions' job cost sheets show the following total costs accumulated on three furniture jobs. Job Job Job 6.02 6.03 6.04 Dir ect mat erial s Dir ect labo r Ov erhe ad $ 1,70 0 $ 3,30 0 800 1,40 0 320 560 $ 2,80 0 1,90 0 760 Job 6.02 was started in production in May, and these costs were assigned to it in May: direct materials, $400; direct labor, $180; and overhead, $72. Jobs 6.03 and 6.04 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 6.02 and 6.03 are finished in June, and Job 6.04 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did not change over these months). Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total? (Omit the "$" sign in your response.) Job 6.02 $ Job 6.03 Job 6.04 Total $ 2. How much total direct labor cost is incurred in June? (Omit the "$" sign in your response.) Total direct labor $ 3. What predetermined overhead rate is used in June? (Omit the "%" sign in your response.) Predetermined overhead rate % 4. How much cost is transferred to finished goods inventory in June? (Omit the "$" sign in your response.) Total transferred cost $