ACCT230- Principles of Cost Accounting Portfolio Project Submission 1 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: Chain Pulleys. Bolts and taps Steel plates 12,000 lb, $24,000 4,000 sets, $20,000 10,000 lb, $5,000 14.000 units, $2,000 The balances in the ledger accounts on October 1 were as follows: $ 12,000 35,000 51,000 3,000 125,000 $ 10,500 Cash.. Work in process. Materials Prepaid insurance Machinery Accumulated depreciation-machinery Office equipment... Accumulated depreciation office equipment. Office furniture... Accumulated depreciation-office furniture. Accounts payable.. Capital stock. Retained earnings 30,000 4,800 20,000 2,500 30,000 182,200 46,000 $276,000 $276,000 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. 1. 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. Required: Using Microsoft Excel complete the following tasks: 1. Set up T-accounts and enter the balances as of October 1. 2. Prepare journal entries to record each of the transactions A-S. 3. 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. 4. Prepare a statement of cost of goods manufactured for October. X ACCT230 Portfolio Project Workbook.xls Journal Entry G (this is the second half for Factory Supplies) - the $350 is the ending balance and so you need to calculate the amount that was used for the entry - this is similar to the adjusting entry you would have done for supplies in Accounting Principles. Manufacturing Overhead should just be the normal Factory Overhead account Journal Entry H - double check the manufacturing overhead account name Journal Entries J & K - if you look on page 21 for #4 - it talks about paying sales and administrative employees and gives an example of the journal entry/account to use - the account can be used for all selling and administrative expenses, not just salaries Journal Entry L- double check the manufacturing overhead account name Journal Entry M - the Insurance Expense account should be the account for all selling/admin expenses mentioned above. Also, please double check the account name for manufacturing overhead Journal Entry N-double check the manufacturing overhead account name Journal Entry 0 - please see page 21-22 #5-6 - you'll see the account names to use for the debits and credits (the accumulated depreciation account names can be found in the chart with the beginning balances) Statement of Cost of Goods Manufactured you need to start with beginning balance in Inventory (materials) - which you have the individual amounts so you just need to subtotal it then add the purchases including factory supplies (you're just missing factory supplies) and subtotal again . then subtract out the indirect materials (this is the factory supplies since it's technically an inventory account) . This leads you to the cost of materials used in production (see page 51 for an example of the format) then just add in the direct labor, factory overhead that was charged to the job and the beginning work in process balance (see beginning balance chart). subtract out the ending balance in work in process - given to you in the transaction listing and you'll be good to go ACCT230- Principles of Cost Accounting Portfolio Project Submission 1 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: Chain Pulleys. Bolts and taps Steel plates 12,000 lb, $24,000 4,000 sets, $20,000 10,000 lb, $5,000 14.000 units, $2,000 The balances in the ledger accounts on October 1 were as follows: $ 12,000 35,000 51,000 3,000 125,000 $ 10,500 Cash.. Work in process. Materials Prepaid insurance Machinery Accumulated depreciation-machinery Office equipment... Accumulated depreciation office equipment. Office furniture... Accumulated depreciation-office furniture. Accounts payable.. Capital stock. Retained earnings 30,000 4,800 20,000 2,500 30,000 182,200 46,000 $276,000 $276,000 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. 1. 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. Required: Using Microsoft Excel complete the following tasks: 1. Set up T-accounts and enter the balances as of October 1. 2. Prepare journal entries to record each of the transactions A-S. 3. 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. 4. Prepare a statement of cost of goods manufactured for October. X ACCT230 Portfolio Project Workbook.xls Journal Entry G (this is the second half for Factory Supplies) - the $350 is the ending balance and so you need to calculate the amount that was used for the entry - this is similar to the adjusting entry you would have done for supplies in Accounting Principles. Manufacturing Overhead should just be the normal Factory Overhead account Journal Entry H - double check the manufacturing overhead account name Journal Entries J & K - if you look on page 21 for #4 - it talks about paying sales and administrative employees and gives an example of the journal entry/account to use - the account can be used for all selling and administrative expenses, not just salaries Journal Entry L- double check the manufacturing overhead account name Journal Entry M - the Insurance Expense account should be the account for all selling/admin expenses mentioned above. Also, please double check the account name for manufacturing overhead Journal Entry N-double check the manufacturing overhead account name Journal Entry 0 - please see page 21-22 #5-6 - you'll see the account names to use for the debits and credits (the accumulated depreciation account names can be found in the chart with the beginning balances) Statement of Cost of Goods Manufactured you need to start with beginning balance in Inventory (materials) - which you have the individual amounts so you just need to subtotal it then add the purchases including factory supplies (you're just missing factory supplies) and subtotal again . then subtract out the indirect materials (this is the factory supplies since it's technically an inventory account) . This leads you to the cost of materials used in production (see page 51 for an example of the format) then just add in the direct labor, factory overhead that was charged to the job and the beginning work in process balance (see beginning balance chart). subtract out the ending balance in work in process - given to you in the transaction listing and you'll be good to go