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chegg staff, only steps 2 and 3. please explain how to get the ending balance for raw materials, and how each step is calculated. I
chegg staff, only steps 2 and 3. please explain how to get the ending balance for raw materials, and how each step is calculated. I actually want to understand this so please explain your work.
thank you.
Conversion Cycle Inventory Accounting Flow Exercise Instructions: Step 1: Classify the items in the table on the other page as either RM (this includes indirect and direct material), DL, MOH or S & A. Step 2: Populate the T-accounts with the amounts of the items based on how you classified each of the items. If you gave an item a RM classification, then it needs to go into the RM T-Account etc. Step 3: Only after completing step 2. Use the general journal below to create a general journal entry for each of the transfer events (see below the T-accounts the events) using the percentage information provided at the bottom of worksheet. Create the journal entry first, then post the amounts into the relevant T-accounts. Do both of these steps for each entry before you proceed to the next Event. Use class packet page 10 -5 for an example (this page will not be just like this problem, but is an example). Step 4: Find the ending balance of each of the T-accounts. Event Accounts Dr. Cr. Event 1 Record the transfer of 75% of the Raw Materials to the WIP account. Event 2 Record the transfer of 100% of the MOH to the WIP account. Event 3 Record the transfer of 82% of the WIP account that represents the COGM to the Finished Goods account Event 4 Record the transfer of the 96% of the Finished Goods that are sold. Turkey Day Productions builds large turkey lawn ornaments in their production facility. Each chipboard lawn ornament has googly eyes, reflective tape borders, metal yard stake legs and is painted to look like a turkey. Using the following costs for Turkey Day Productions, fill in the appropriate T-accounts and determine the cost of Goods Sold for this period. You should start by classifying each of the costs as Raw Material RM (assume that all materials are direct materials), DL, MOH or S&A in the space provided to the left of the cost (the first two are done as an example). See additional instructions below. Every item will be classified as RM, DL, MOH or S & A. Class Item of Cost $ Amount Class Item of Cost $ Amount RM Chipboard 25,580 Dan Paint 12,000 MOH Supervisor Salary 40,000 V Freight In on Raw Materials 475 w Nails 5,000 Facility Insurance 23,500 DL Assembly Worker's Wages 67,500 Googly Eyes 7,000 Depreciation Factory 10,000 Quality Control Supervisor 32,000 AON 54 Equipment Salary Km Construction Staples 7002 Reflective Tape MON Factory Rent 15,700 Painter's Wages 65,200 MON Utilities on the Factory 1,2009 Glue 4,400 Utilities on the Home Office 2,000 Metal Yard Stake Legs 6,800 DL Chipboard Cutter's Wages 65,200 MW Machine Maintenance 9,125 6,500 Raw Materials Inventory BI 17,350 Work-In-Process Inventory BI 23,000 Finished Goods Inventory BI 19,750 Cost of Goods Sold Expense Selling & Administrative Manufacturing Overhead Transfer Events: Event 1: Assume that 75% of Raw Materials are used during the period. Event 2: 100% of the Manufacturing Overhead is applied to production during this period. Event 3: 82% of Work-In-Process is finished up during the period. Event 4: 96% of the Finished Goods are sold during the period. Round calculations to the nearest dollar (no cents)Step by Step Solution
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