Business Transactions (Assignment #3) Required: Document K&J Bakery Inc January transactions using journal entries (round all calculations to 2 decimal places). All other costs such as utilities must be accounted for in the journal entries (assume such transactions where applicable, are paid in cash).

Keisha spent the month of December talking to various suppliers in order to determine her cost structure. She added cost data to the information in Table 1.

K&J Bakery Inc. opened for business on January 1, 20X1 as planned. During the month of January, the business purchased and used 200 pounds of flour, 200 pounds of sugar, 67 dozen eggs and had 5 bad eggs to dispose of during the month, 20 baking soda boxes, 200 pounds of butter, 100 pounds of raisins, 50 bottles of rum, and the other ingredients (one box of each for a total of four) all from one supplier on account. Manufacturing overhead is applied to production at $4 per cake. Keisha purchased the oven using the startup capital and paid all salaries. Her nieces worked 300 hours in total for the month. January was a very good month for the bakery since it baked 200 cakes and sold all for cash. The average selling price was $50 per cake. All manufacturing overhead is closed out at the month-end. The supplier was paid at the month-end. Given T-Charts:

Assignment #3 Beg Bal Flour Baking soda Sugar Eggs Butter Raisons Others Rum End Bal Materials Inventory $0 $2,179 Direct $600 $ 150 Indirect $120 $120 $134 $325 $ 400 $30 $600 $0 Salaries Payable Beg Bal $0 Keisha Salary $500 Aunt Salary $100 Neices $2,400 Accountant $100 End Bal $0 500 100 2400 100 Beg Bal Finished Goods $5,379 $5,379 $o Work in Process $0 $5,379 $2,179 $2,400 $800 Beg Bal DM DL MOH End Bal $0 End Bal $0 S&A Expenses Sales $o $0 Beg Bal Cakes sold $ 10,000 Beg Bal Keisha Salary Accountants Phone Cash Register End Bal $500 $100 $50 End Bal $10,0001 12 $662 Acc. Depreciation $0 Beg Bal Depr Beg bal Sales Cash $0 $10,000$ $ $ $4,509 3100 Wages 2,329 Materials 50 Cell Phone 12 Cash Register End Bal End Bal $100 Beg Bal Baking Soda Other Cost of Goods Sold $0 $5,379 $200 Beg Bal Goods Sold Under Applied End Bal Maunfacturing Overhead So $120 $800 $30 $200 $50 $600 $100 $ 100 $0 Utilities $5,579 Rent (Bldg) Aunt Salary Depreciation End Bal Beg Bal $ Accounts Payable $0 2,391 $ 2,329 Materials 50 Phone 1 1 2 Cash register $o End Bal Assignment #3 Beg Bal Flour Baking soda Sugar Eggs Butter Raisons Others Rum End Bal Materials Inventory $0 $2,179 Direct $600 $ 150 Indirect $120 $120 $134 $325 $ 400 $30 $600 $0 Salaries Payable Beg Bal $0 Keisha Salary $500 Aunt Salary $100 Neices $2,400 Accountant $100 End Bal $0 500 100 2400 100 Beg Bal Finished Goods $5,379 $5,379 $o Work in Process $0 $5,379 $2,179 $2,400 $800 Beg Bal DM DL MOH End Bal $0 End Bal $0 S&A Expenses Sales $o $0 Beg Bal Cakes sold $ 10,000 Beg Bal Keisha Salary Accountants Phone Cash Register End Bal $500 $100 $50 End Bal $10,0001 12 $662 Acc. Depreciation $0 Beg Bal Depr Beg bal Sales Cash $0 $10,000$ $ $ $4,509 3100 Wages 2,329 Materials 50 Cell Phone 12 Cash Register End Bal End Bal $100 Beg Bal Baking Soda Other Cost of Goods Sold $0 $5,379 $200 Beg Bal Goods Sold Under Applied End Bal Maunfacturing Overhead So $120 $800 $30 $200 $50 $600 $100 $ 100 $0 Utilities $5,579 Rent (Bldg) Aunt Salary Depreciation End Bal Beg Bal $ Accounts Payable $0 2,391 $ 2,329 Materials 50 Phone 1 1 2 Cash register $o End Bal