CAN YOU PLEASE HELP WITH #10? Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period.

ANSWERS 1-9

Chart of Accounts 10000 11000 12000 12100 15000 15050 16000 20000 40000 Cash Accounts Receivable DM Wood DM Glass Work-In-Process WIP Factory Overhead Finished Goods FG Wages Payable Sales COGS 50000 a. In the first journal entry record the purchase of the wood and the glass using cash. b. Record the materials transferred to WIP. Again use one journal entry to record the transfer of the wood and the glass. c. Record the direct labor into WIP using wages payable. d. Record the applied FOH. e. Record the actual FOH using cash. f. Record the over or under applied FOH g. Record the sale of the goods on account along with the cost of the inventory that was sold. Combine both into one journal entry showing the sale first and inventory second. Using a spreadsheet and based on the information provided in the next section, complete the following requirements A: Determine the predetermined overhead rate. 40000/80000=$0.50 2. Determine the total number of frames to account for. 75,000 Frames to account for 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units (Actual) Direct Materials Direct Material Conversion Whole Units Glass Costs Wood XxX Beginning Start/Completed Completed/Transferred Out Ending Xxx xXx xXX 4. Determine the total cost for the wood and the unit amount for the wood for one frame. S. Determine the total cost for the glass and the unit cost for each pane of glass. 6. Determine the total conversion cost and the conversion cost per frame. Determine the total equivalent cost per frame. Prepare a Cost of Production report. This report should show all costs transferred into Work-in- Process and the costs transferred to Finished Goods. Determine the amounts for the following. 8. This process uses FIFO costing. 9. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Unadjusted Cost of Goods Sold Over/Under Applied Manufacturing Overhead Gross Margin Income from Operations Net Income d) e) f) g) 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries. 1. 40000/80000 0.50 per frame 2. The total number of frames to account are: Opening WIP Started Frames to Account for 0 75000 75000 3. Equivalent units schedule 3. Equivalent Units Schedule Whole Units DM Wood DM Glass Conversion Costs Beginning Start/Completed Completed/ T.O Ending Equivalent Units 72000 72000 750 72750 4. Total cost of wood 75000 3 1.6 $360,000 Cost per frame $360000/75000 $4.8 per frame 5. Total cost of glass 72000 $0.25 $18000 Cost per frame. $18000/72000 $0.25 6. Total conversion cost Direct laborFOH applied 29100 (72750*0.50) 65475 Conversion cost per frame 65475/72750 $0.90 per frame 7. Total equivalent cost per frame cost of (wood+glassconversion cost) 4.8+0.25+0.90 $5.95 per frame 8. Prepare a cost of production report. This report should show all costs transferred into Work in Process and the cost transferred to finished goods. This process uses FIFO costing. Whole Units DM Wood DM Glass C. Costs otal Beginning Started & Completed Complete/Transfer Out Ending Equivalent Units Costs Incurred Cost per Equivalent Unit Cost of Opening WIP Cost of S &C Cost of Transferred Out Cost of Closing WIP 72000 72000 727 $360,000.00 $18,000.00$65,475 $4.80 345600 345600 14400 428400 428400 15075 675 9. Determine the amounts for the following a) Ending WIP Invento Equivalent Units Cost p/unit Cost Materials-Wood 3000 Conversion Costs 750 80 90 14,400 75 | $15,075 End. wlP (SSS) WIP (units b) Ending Finished Goods Inventory and Cost of Goods Sold Units Cost p/ unit Total Cost Beg. Finished Goods Inv Units Completed and Transferred End. Finished Goods Inv $7.00 $5.95 $5.95 $140,000 $428,400 $59,500 72000 10000 Answer # 9 (Part c) Units Amounts (S) Beginning finished goods Inventory in Dollars Add: Cost of Transferred out Less: Ending finished goods Inventory in Dollars Unadjusted Cost of goods sold (Units sold 82000) 20,000 is 140,000.00 72,000 428,400.00o 10,000 59,500.00 82,000$508,900.00 Answer # 9 (Part d) Actual Manufacture overhead cost Less: Factory overhead applied (72750*0.50) Under (Over) applied Manufacture overhead Over applied Manufacture overhead 36,000.00 36,375.00 (375.00) 375.00 Answer # 9 (Parte) Sales revenue (82000*10) Less: Adjusted Cost of goods sold Unadjusted Cost of goods sold Over applied Manufacture overhead(less) Adjusted Cost of goods sold Gross Margin $ 820,000.00 S 508,900.00 375.00 $ 508,525.00508,525.00 S 311,475.00 Answer # 9 (Part f) Gross Margin Less: Operating expense (Selling and Administrative expense) Income from operation 311,475.00 100,000.00 $211,475.00 Answer # 9 (Part g) Income from operation Less. Tax expense @ 30% Net income $ 211,475.00 63,442.50 $ 148,032.50