Chapter 12 Problems i Saved Help Save & Exit Sub Check my wor 2 Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops 3.33 The list of beginning balances are given below: Cash Raw materials blork in process cutting Work in process assembly Finished goods Production supplies Common stock Retained earnings $24,900 8,000 9,500 11,58e 2,90e 188 47,00e 8,18e eBook Print References The transactions for the second year of operation (2019) are described here. (Assume that all transactions are cash transactions unless otherwise indicated.) 1. The company purchased $10,000 of direct raw materials and $650 of indirect materials. Indirect materials are capitalized in the Production Supplies account. 2. Materials totaling $7,250 were issued to the cutting department. 3. Labor cost was $23,500. Direct labor for the cutting and assembly departments was $11,000 and $10,000, respectively. Indirect labor costs were $2,500. (Note: Assume that sufficient cash is available when periodic payments are made. These amounts represent summary data for the entire year and are not presented in exact order of collection and payment.) 4. The predetermined overhead rate was $0.50 per direct labor dollar in each department. 5. Actual overhead costs other than indirect materials and indirect labor for the month were $7,300 6. The cutting department transferred $15,500 of inventory to the assembly department. 7. The assembly department transferred $30,500 of inventory to finished goods 8. The company sold inventory costing $17,500 for $32,000 9. Selling and administrative expenses were $4,200 10. At the end of 2019, $150 of production supplies was on hand 11. Assume that over- or underapplied overhead is insignificant. Required a. Record the data in T-accounts b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019 Complete this question by entering your answers in the tabs below Req A to c Req D CGM Req D Inc Stmt Req D Bal Sheet Sched Record the data in T-accounts. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is ins Close the revenue and expense accounts Cash Common Stock Beg. bal Beg. bal End. bal End. bal 4 Raw Materials Retained Earnings Beg. bal Beg. bal CI End. bal End. bal Manufacturing Overhead Sales Revenue Beg. ba Beg. bal Cl End. bal End. bal 0 Work in process Cutting Cost of Goods Sold Beg. bal Beg. bal Cl End. bal 0 End. bal 2 Raw Materials Retained Earnings Beg. bal Beg. bal End. bal End. bal Manufacturing Overhead Sales Revenue Beg. bal Beg. bal eBook End. bal eferences End. bal 0 Work in process Cutting Cost of Goods Sold Beg. bal Beg. bal End. bal End. bal Work in process Assembly Selling & Administrative Expenses Beg. bal Beg. bal Cl End. bal 0 End. bal Finished Goods Beg. bal Production Supplies 4 End. bal 2 1. The company purchased $10,000 of direct raw materials and $650 of indirect materials. Indirect materials are capitalized in the Production Supplies account. 2. Materials totaling $7,250 were issued to the cutting department. 3. Labor cost was $23,500. Direct labor for the cutting and assembly departments was $11,000 and $10,000, respectively. Indirect 3 labor costs were $2,500. (Note: Assume that sufficient cash is available when periodic payments are made. These amounts payment) represent summary data for the entire year and are not presented in exact order of collection and payment.) 4. The predetermined overhead rate was $0.50 per direct labor dollar in each department. 5. Actual overhead costs other than indirect materials and indirect labor for the month were $7,300 6. The cutting department transferred $15,500 of inventory to the assembly department. 7. The assembly department transferred $30,500 of inventory to finished goods 8. The company sold inventory costing $17,500 for $32,000 9. Selling and administrative expenses were $4,200 10. At the end of 2019, $150 of production supplies was on hand 11. Assume that over- or underapplied overhead is insignificant. 5. ctarmd overhead rate was $0.50 per direct labor dolof eBook Print ferences Required a. Record the data in T-accounts b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019 Complete this question by entering your answers in the tabs below CGM Sched Req A to Req D CGMReq D Inc Req D Bal Sheet Stmt Prepare a schedule of cost of goods manufactured and sold for 2019 EMINENCE CORPORATION Cost of Goods Manufactured and Sold for 2019 Raw materials available Raw materials used Total manufacturing costs Total work in process i nventory Cost of goods manufactured Goods available Cost of goods sold 2 Cash Raw materials Work in process cutting Work in process assembly Finished goods Production supplies Common stock Retained earnings $24,000 8,000 9,500 11,500 2,000 100 47,000 8,180 3 nts The transactions for the second year of operation (2019) are described here. (Assume that all transactions are cash transactions unless otherwise indicated.) eBook Print 1. The company purchased $10,000 of direct raw materials and $650 of indirect materials. Indirect materials are capitalized in the Production Supplies account. 2. Materials totaling $7,250 were issued to the cutting department. eferences 3. Labor cost was $23,500. Direct labor for the cutting and assembly departments was $11,000 and $10,000, respectively. Indirect labor costs were $2,500. (Note: Assume that sufficient cash is available when periodic payments are made. These amounts represent summary data for the entire year and are not presented in exact order of collection and payment.) 4. The predetermined overhead rate was $0.50 per direct labor dollar in each department. 5. Actual overhead costs other than indirect materials and indirect labor for the month were $7,300 6. The cutting department transferred $15,500 of inventory to the assembly department. 7. The assembly department transferred $30,500 of inventory to finished goods 8. The company sold inventory costing $17,500 for $32,000 9. Selling and administrative expenses were $4,200 10. At the end of 2019, $150 of production supplies was on hand 11. Assume that over- or underapplied overhead is insignificant. Requirec a. Record the data in T-accounts b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019 Complete this question by entering your answers in the tabs below Req A to c eq CGM Sched Req D Inc Stmt Req D Bal Sheet Prepare an income statement for 2019 EMINENCE CORPORATION Income Statement for 2019 ales revenue Cost of goods sold Gross margin Operating expenses 32.000 17.400 14.600 elling and administrative expenses 4,200 10.400 et income 2 Retained earnings 8,100 The transactions for the second year of operation (2019) are described here. (Assume that all transactions are cash transactions unless otherwise indicated.) nts 1. The company purchased $10,000 of direct raw materials and $650 of indirect materials. Indirect materials are capitalized in the Production Supplies account. 2. Materials totaling $7,250 were issued to the cutting department. 3. Labor cost was $23,500. Direct labor for the cutting and assembly departments was $11,000 and $10,000, respectively. Indirect labor costs were $2,500. (Note: Assume that sufficient cash is available when periodic payments are made. These amounts represent summary data for the entire year and are not presented in exact order of collection and payment.) 4. The predetermined overhead rate was $0.50 per direct labor dollar in each department. 5. Actual overhead costs other than indirect materials and indirect labor for the month were $7,300 6. The cutting department transferred $15,500 of inventory to the assembly department. Print 7. The assembly department transferred $30,500 of inventory to finished goods 8. The company sold inventory costing $17,500 for $32,000 9. Selling and administrative expenses were $4,200 10. At the end of 2019, $150 of production supplies was on hand 11. Assume that over- or underapplied overhead is insignificant. eferences Required a. Record the data in T-accounts b. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. c. Close the revenue and expense accounts d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2019 Complete this question by entering your answers in the tabs below Req D cGM Sched Req D Inc Stmt Req D Bal Sheet Req A to c Prepare a balance sheet for 2019 EMINENCE CORPORATION Balance Sheet for 2019 Assets 10,350 10,750 29,250 15,000 150 ash materials inventory in process inventory inished goods inventory uction supplies Total assets 65,500 Equity mon stock 47,000 18,500 etained earnings Total equity 65,500