Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	58,000		$	59,000
Goods in process inventory		416,500			548,000
Finished goods inventory		614,000			39,001

The following additional information describes the company's production activities for May.

Raw materials purchases (on credit)	$	280,000
Factory payroll cost (paid in cash)		1,859,500
Other overhead cost (Other Accounts credited)		82,000
Materials used
Direct	$	209,000
Indirect		58,000
Labor used
Direct	$	1,069,500
Indirect		790,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	5,000,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

rev: 11_02_2011

references

1.

value: 45.00 points

Required:
1(a)	Compute the cost of products transferred from production to finished goods. (Omit the "$" sign in your response.)

Cost of products transferred

$

1(b)	Compute the cost of goods sold. (Omit the "$" sign in your response.)

Cost of goods sold

$

rev: 10_31_2011

check my workeBook Links (4)references

2.

value: 45.00 points

2(a)	Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Factory payrollAccounts receivableFinished goods inventoryAccounts payableFactory overheadRaw materials inventorySalesCost of goods sold
	(Click to select)Accounts receivableRaw materials inventoryCost of goods soldAccounts payableSalesFactory payrollFactory overheadFinished goods inventory

2(b)	Prepare journal entry dated May 31 to record the direct materials usage. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Accounts receivableGoods in process inventoryRaw materials inventoryFactory payrollOther accountsCashFinished goods inventoryFactory overhead
	(Click to select)Finished goods inventoryRaw materials inventoryGoods in process inventoryFactory payrollCashAccounts receivableOther accountsFactory overhead

2(c)	Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Finished goods inventoryCashFactory overheadAccounts payableRaw materials inventoryCost of goods soldGoods in process inventoryFactory payroll
	(Click to select)Raw materials inventoryFinished goods inventoryCashFactory overheadGoods in process inventoryFactory payrollAccounts payableCost of goods sold

2(d)	Prepare journal entry dated May 31 to record the payroll costs. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)CashGoods in process inventoryRaw materials inventorySalesAccounts receivableFactory overheadOther accountsFactory payroll
	(Click to select)Factory payrollSalesCashGoods in process inventoryRaw materials inventoryOther accountsFactory overheadAccounts receivable

2(e)	Prepare journal entry dated May 31 to record the direct labor costs. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Factory overheadOther accountsGoods in process inventoryCost of goods soldAccounts receivableFactory payrollFinished goods inventorySales
	(Click to select)Factory payrollFinished goods inventoryAccounts receivableOther accountsGoods in process inventoryFactory overheadCost of goods soldSales

2(f)	Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Goods in process inventoryFactory payrollCost of goods soldFactory overheadSalesOther accountsAccounts receivableFinished goods inventory
	(Click to select)Factory overheadOther accountsCost of goods soldAccounts receivableFactory payrollSalesGoods in process inventoryFinished goods inventory

2(g)	Prepare journal entry dated May 31 to record the other overhead costs. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Factory overheadFinished goods inventorySalesAccounts receivableCost of goods soldRaw materials inventoryOther accountsGoods in process inventory
	(Click to select)Cost of goods soldRaw materials inventoryOther accountsGoods in process inventorySalesAccounts receivableFinished goods inventoryFactory overhead

2(h)	Prepare journal entry dated May 31 to record the overhead applied. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)SalesAccounts payableRaw materials inventoryGoods in process inventoryFinished goods inventoryAccounts receivableCost of goods soldFactory overhead
	(Click to select)Cost of goods soldSalesRaw materials inventoryGoods in process inventoryFinished goods inventoryAccounts payableFactory overheadAccounts receivable

2(i)	Prepare journal entry dated May 31 to record the goods transferred from production to finished goods.(Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Goods in process inventoryAccounts receivableSalesRaw materials inventoryFactory overheadFinished goods inventoryAccounts payableCost of goods sold
	(Click to select)Factory overheadCost of goods soldGoods in process inventoryRaw materials inventoryAccounts payableFinished goods inventorySalesAccounts receivable

2(j)	Prepare journal entry dated May 31 to record the sale of finished goods. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
May 31	(Click to select)Factory overheadGoods in process inventoryAccounts payableAccounts receivableFactory payrollRaw materials inventoryCashSales
	(Click to select)Accounts receivableGoods in process inventoryRaw materials inventorySalesCashFactory payrollAccounts payableFactory overhead
	(Click to select)Raw materials inventoryFinished goods inventoryCost of goods soldFactory overheadAccounts payableGoods in process inventoryFactory payrollCash
	(Click to select)Raw materials inventoryFinished goods inventoryAccounts payableFactory overheadCashCost of goods soldGoods in process inventoryFactory payroll