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Confirming PagesSAMPSON COMPANYGeneral Ledger AccountsRaw Materials Inventory 1 / 1 Balance 1 0 , 0 0 0 Manufacturing OverheadWork in Process Inventory ( WIP )
Confirming PagesSAMPSON COMPANYGeneral Ledger AccountsRaw Materials Inventory Balance Manufacturing OverheadWork in Process Inventory WIP Balance Finished Goods Inventory Balance Individual Job Cost Sheets subsidiary ledgers to WIPJob Job Beg. Balance Direct Materials Direct Labor Applied OHTotal Mfg CostCost of Goods SoldSales Revenue Selling, General, and Administrative ExpensesCash and Other Assets Balance Payables and Other Liabilities BalanceStockholders Equity Balancewhichindd whichindd : PM: PM Confirming PagesDuring January, the company had the following transactions:a Purchased $ worth of raw materials on account.b Issued the following materials into production:Item Cost ExplanationDirect materials $ Job $; Job $Indirect materials Used on both jobsTotal materials issued $c Recorded salaries and wages payable as follows:Item Cost ExplanationDirect labor $ Job $; Job $Indirect labor For factory supervisionSalaries For administrative staffTotal payroll cost $d Applied overhead to jobs based on the number of direct labor hours required:Job Number Direct Labor HoursJob hoursJob hoursTotal hourse Recorded the following actual manufacturing costs:Item Cost ExplanationRent $ Paid factory rent in cashDepreciation Factory equipmentInsurance Had one month of factory insurance policy expireUtilities Received factory utility bill but did not pay itTotal cost $f Recorded the following general and administrative costs:Item Cost ExplanationAdvertising $ Advertising paid in cashDepreciation Office equipmentOther expenses Micellaneous expenses incurred but not paidTotal cost $g Sold Job which is recorded in Finished Goods Inventory at a cost of $ for $h Completed Job but did not sell it; Job is still in process at yearend.whichindd whichindd : PM: PM Confirming PagesRequired: Compute and interpret the predetermined overhead rate How much overhead would be applied to jobs during the period? Compute the total cost of Jobs and at the end of the period. Where would the costof each of these jobs appear on the yearend balance sheet? Prepare journal entries to record the January transactions and post the entries to the generalledger Taccounts given earlier in the problem Calculate the amount of over or underapplied overhead Prepare the journal entry to dispose of the overhead balance assuming that it had been a yearend balance instead of a monthend balance. Post the effect to the general ledger Taccounts Prepare a statement of cost of goods manufactured report including the adjustment for overor underapplied overhead Prepare a brief income statement for Sampson Company.whichindd whichindd : PM: PMPlease note that you do not need to include the Taccountsgeneral ledger that areprovided. The questions above and only ask for the journal entries. You can use theTaccounts for your work if you wish
Confirming PagesSAMPSON COMPANYGeneral Ledger AccountsRaw Materials Inventory Balance Manufacturing OverheadWork in Process Inventory WIP Balance Finished Goods Inventory Balance Individual Job Cost Sheets subsidiary ledgers to WIPJob Job Beg. Balance Direct Materials Direct Labor Applied OHTotal Mfg CostCost of Goods SoldSales Revenue Selling, General, and Administrative ExpensesCash and Other Assets Balance Payables and Other Liabilities BalanceStockholders Equity Balancewhichindd whichindd : PM: PM
Confirming PagesDuring January, the company had the following transactions:a Purchased $ worth of raw materials on account.b Issued the following materials into production:Item Cost ExplanationDirect materials $ Job $; Job $Indirect materials Used on both jobsTotal materials issued $c Recorded salaries and wages payable as follows:Item Cost ExplanationDirect labor $ Job $; Job $Indirect labor For factory supervisionSalaries For administrative staffTotal payroll cost $d Applied overhead to jobs based on the number of direct labor hours required:Job Number Direct Labor HoursJob hoursJob hoursTotal hourse Recorded the following actual manufacturing costs:Item Cost ExplanationRent $ Paid factory rent in cashDepreciation Factory equipmentInsurance Had one month of factory insurance policy expireUtilities Received factory utility bill but did not pay itTotal cost $f Recorded the following general and administrative costs:Item Cost ExplanationAdvertising $ Advertising paid in cashDepreciation Office equipmentOther expenses Micellaneous expenses incurred but not paidTotal cost $g Sold Job which is recorded in Finished Goods Inventory at a cost of $ for $h Completed Job but did not sell it; Job is still in process at yearend.whichindd whichindd : PM: PM
Confirming PagesRequired: Compute and interpret the predetermined overhead rate How much overhead would be applied to jobs during the period? Compute the total cost of Jobs and at the end of the period. Where would the costof each of these jobs appear on the yearend balance sheet? Prepare journal entries to record the January transactions and post the entries to the generalledger Taccounts given earlier in the problem Calculate the amount of over or underapplied overhead Prepare the journal entry to dispose of the overhead balance assuming that it had been a yearend balance instead of a monthend balance. Post the effect to the general ledger Taccounts Prepare a statement of cost of goods manufactured report including the adjustment for overor underapplied overhead Prepare a brief income statement for Sampson Company.whichindd whichindd : PM: PMPlease note that you do not need to include the Taccountsgeneral ledger that areprovided. The questions above and only ask for the journal entries. You can use theTaccounts for your work if you wish
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