Determine the amounts for the following. 9. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Show and calculate an Income Statement f) Over or Under applied COGS g) Gross Profit h) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle using the chart of account numbers instead of account names when entering the journal entries. A chart of Accounts is shown below. For example: Instead of Debit Raw Materials - Plastic I would debit account number 12000 $5,000 and credit 10000 $5,000 when purchasing the raw materials plastic for cash. An example willl be provided for each journal entry. Please follow instructions carefully. Assets 10000 Cash Accounts Receivable 11000 Raw Materials-Plastic 12000 12100 Raw Materials - Wheels Work in 12200 process Factory Overhead 12300 Finished Goods 12400 Liabilities Accounts Payable 20000 Wages Payable 21000 Revenues Sales 40000 Expenses COGS 50000 CCOUNTING SOCIETY Manufacturing Process Information Teddy started a small manufacturing plant that fabricates small scale trucks. The manufacturing process starts with plastic pellets being put into a plastic molding machine. After the trucks are shaped in the mold, they are cooled and then inspected. If the truck passes inspection, the wheels are added at the end and they are transferred to finished goods. This process is completely automated. Direct material plastic is added 100 % at the beginning of the process; direct material wheels are added 100 % as the last step in the process. Conversion costs are added equally throughout the process. Conversion is 45 % complete for the beginning inventory work in process and 55 % complete for the ending inventory work in process At the beginning of the accounting period, Teddy started 5,200 trucks into production. Estimated factory overhead is $1,300. This information is to be used to determine the application rate for overhead. Estimated and actual direct labor costs totaled $2,000. Actual factory overhead costs totaled $1,500. Selling and Administrative Expenses totaled $1,000 The following information is available concerning the direct materials. Direct Materials-Plastic 0 pounds@$2.50 a pound 2,800 pounds@ $2.50 a pound 200 pounds @ $2.50 a pound Beginning inventory Purchase of plastic Ending Inventory One pound of plastic makes 2 trucks Direct Materials- Wheels (there are four wheels for each truck) Beginning inventory Purchase of wheels 0 wheels@ $0.10 a wheel 20,800 wheels @ $0.10 a wheel The work in process account has the following information Beginning Work in Process contains 0 trucks Ending work in process contains 300 trucks The finished goods account has the following Information Beginning Finished Goods Ending Finished Goods 0 trucks 2,000 trucks Tax rate is 35 % 2900 trucks were sold at $6.50 10 | Page Determine the amounts for the following. 9. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Show and calculate an Income Statement f) Over or Under applied COGS g) Gross Profit h) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle using the chart of account numbers instead of account names when entering the journal entries. A chart of Accounts is shown below. For example: Instead of Debit Raw Materials - Plastic I would debit account number 12000 $5,000 and credit 10000 $5,000 when purchasing the raw materials plastic for cash. An example willl be provided for each journal entry. Please follow instructions carefully. Assets 10000 Cash Accounts Receivable 11000 Raw Materials-Plastic 12000 12100 Raw Materials - Wheels Work in 12200 process Factory Overhead 12300 Finished Goods 12400 Liabilities Accounts Payable 20000 Wages Payable 21000 Revenues Sales 40000 Expenses COGS 50000 CCOUNTING SOCIETY Manufacturing Process Information Teddy started a small manufacturing plant that fabricates small scale trucks. The manufacturing process starts with plastic pellets being put into a plastic molding machine. After the trucks are shaped in the mold, they are cooled and then inspected. If the truck passes inspection, the wheels are added at the end and they are transferred to finished goods. This process is completely automated. Direct material plastic is added 100 % at the beginning of the process; direct material wheels are added 100 % as the last step in the process. Conversion costs are added equally throughout the process. Conversion is 45 % complete for the beginning inventory work in process and 55 % complete for the ending inventory work in process At the beginning of the accounting period, Teddy started 5,200 trucks into production. Estimated factory overhead is $1,300. This information is to be used to determine the application rate for overhead. Estimated and actual direct labor costs totaled $2,000. Actual factory overhead costs totaled $1,500. Selling and Administrative Expenses totaled $1,000 The following information is available concerning the direct materials. Direct Materials-Plastic 0 pounds@$2.50 a pound 2,800 pounds@ $2.50 a pound 200 pounds @ $2.50 a pound Beginning inventory Purchase of plastic Ending Inventory One pound of plastic makes 2 trucks Direct Materials- Wheels (there are four wheels for each truck) Beginning inventory Purchase of wheels 0 wheels@ $0.10 a wheel 20,800 wheels @ $0.10 a wheel The work in process account has the following information Beginning Work in Process contains 0 trucks Ending work in process contains 300 trucks The finished goods account has the following Information Beginning Finished Goods Ending Finished Goods 0 trucks 2,000 trucks Tax rate is 35 % 2900 trucks were sold at $6.50 10 | Page