During May, the following transactions were completed and reported by Sylvana Company:

Materials purchased on account, $60,200.

Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800.

Payroll for the month: direct labor, $75,000; indirect labor, $35,000; administrative, $28,000; sales, $19,000.

Depreciation on factory plant and equipment, $10,400.

Property taxes on the factory accrued during the month, $1,450.

Insurance on the factory expired with a credit to the prepaid insurance account, $6,200.

Factory utilities, $5,500.

Advertising paid with cash, $7,900.

Depreciation on office equipment, $800; on sales vehicles, $1,650.

Legal fees incurred but not yet paid for preparation of lease agreements, $750.

Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the month.

Cost of jobs completed during the month, $160,000.

The company also reported the following beginning balances in its inventory accounts:

Materials Inventory	$7,500
Work-in-Process Inventory	37,000
Finished Goods Inventory	50,000

Required:

Question Content Area

1. Prepare journal entries to record the transactions occurring in May. For a compound transaction, if an amount box does not require an entry, leave it blank.

a.	CashFinished GoodsLegal Fees PayableMaterialsOverhead Control	- Select -
	Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods		- Select -
b.	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process	- Select -	- Select -
	MaterialsOverhead ControlPrepaid InsuranceProperty Taxes PayableSelling Expense	- Select -	- Select -
	Accumulated DepreciationAdministrative ExpenseCashFinished GoodsMaterials	- Select -	- Select -
c.	Prepaid InsuranceProperty Taxes PayableUtilities PayableWages PayableWork in Process	- Select -	- Select -
	Overhead ControlPrepaid InsuranceProperty Taxes PayableUtilities PayableWages Payable	- Select -	- Select -
	Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods	- Select -	- Select -
	Prepaid InsuranceProperty Taxes PayableSelling ExpenseUtilities PayableWages Payable	- Select -	- Select -
	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process	- Select -	- Select -
d.	CashFinished GoodsMaterialsOverhead ControlPrepaid Insurance	- Select -
	Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods		- Select -
e.	GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable	- Select -
	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process		- Select -
f.	GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable	- Select -
	Finished GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable		- Select -
g.	Finished GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable	- Select -
	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process		- Select -
h.	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process	- Select -
	Administrative ExpenseCashFinished GoodsMaterialsOverhead Control		- Select -
i.	Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods	- Select -	- Select -
	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process	- Select -	- Select -
	Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods	- Select -	- Select -
j.	Administrative ExpenseCashFinished GoodsLegal Fees PayableMaterials	- Select -
	Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods		- Select -
k.	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process	- Select -
	MaterialsOverhead ControlPrepaid InsuranceProperty Taxes PayableSelling Expense		- Select -
l.	CashCost of Goods SoldFinished GoodsMaterialsOverhead Control	- Select -
	Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process		- Select -

Question Content Area

2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process Inventory, and Finished Goods Inventory. Post the entries to the T-account in the same order in which they were journalized.

Materials Inventory
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank 5dd88cfb702e02a_2	Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank 5dd88cfb702e02a_4
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank 5dd88cfb702e02a_6
Balance	fill in the blank 5dd88cfb702e02a_7

Question Content Area

Work in Process Inventory
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank bc6cb8fdcf8bff9_2	Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank bc6cb8fdcf8bff9_4
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank bc6cb8fdcf8bff9_6
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank bc6cb8fdcf8bff9_8
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank bc6cb8fdcf8bff9_10
Balance	fill in the blank bc6cb8fdcf8bff9_11

Question Content Area

Finished Goods Inventory
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank 2df92c00a068062_2
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank 2df92c00a068062_4
Balance	fill in the blank 2df92c00a068062_5

Question Content Area

Overhead Control Inventory
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_2	(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_4
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_6
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_8
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_10
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_12
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)	fill in the blank a7d357fff001044_14
		Balance	fill in the blank a7d357fff001044_15

Question Content Area

3. Prepare a statement of cost of goods manufactured.

Sylvana Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20XX

Cost of goods manufacturedDepreciation, plant, and equipmentDirect materialsEnding work in processIndirect laborOverhead appliedSupplies		$- Select -
Beginning work in processCost of goods manufacturedDepreciation, plant, and equipmentDirect laborIndirect laborInsurance		- Select -
Overhead:
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processOverhead appliedSupplies	$- Select -
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processIndirect laborOverhead applied	- Select -
Beginning work in processCost of goods manufacturedDepreciation, plant, and equipmentDirect laborDirect materialsEnding work in processOverhead applied	- Select -
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processOverhead appliedProperty taxes	- Select -
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processOverhead appliedUtilities, factory	- Select -
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processInsuranceOverhead applied	- Select -
	$fill in the blank 73f1a6fe4ff1ff0_17
Add: Beginning work in processAdd: Cost of goods manufacturedAdd: Depreciation, plant, and equipmentAdd: Direct laborAdd: Direct materialsAdd: Ending work in processAdd: Indirect laborAdd: InsuranceAdd: Overapplied overheadAdd: Supplies	- Select -
Beginning work in processCost of goods manufacturedDepreciation, plant, and equipmentDirect laborDirect materialsIndirect laborOverhead applied		- Select -
Manufacturing costs added		$fill in the blank 73f1a6fe4ff1ff0_22
Add: Beginning work in processAdd: Cost of goods manufacturedAdd: Depreciation, plant, and equipmentAdd: Direct laborAdd: Direct materialsAdd: Ending work in processAdd: Indirect laborAdd: InsuranceAdd: Supplies		- Select -
Less: Beginning work in processLess: Cost of goods manufacturedLess: Direct laborLess: Direct materialsLess: Ending work in processLess: Indirect laborLess: InsuranceLess: Utilities, factory		- Select -
Cost of goods manufactured		$fill in the blank 73f1a6fe4ff1ff0_27

Question Content Area

4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase?

IncreasesDecreases

by $fill in the blank d9a2f105fffd029_2