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Edwin Parts, a job shop, recorded the following transactions in May: 1. Purchased $87,200 in materials on account. 2. Issued $3,650 in supplies from the

image text in transcribedimage text in transcribed Edwin Parts, a job shop, recorded the following transactions in May: 1. Purchased $87,200 in materials on account. 2. Issued $3,650 in supplies from the materials inventory to the production department. 3. Issued $43,600 in direct materials to the production department. 4. Paid for the materials purchased in transaction (1). 5. Incurred wage costs of $67,200, which were debited to Payroll, a temporary account. Of this amount, $22,300 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $44,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 6. Recognized $34,700 in fringe benefit costs, incurred as a result of the wages paid in (5). This $34,700 was debited to Payroll and credited to Fringe Benefits Payable. 7. Analyzed the Payroll account and determined that 65 percent represented direct labor; 15 percent, indirect manufacturing labor; and 20 percent, administrative and marketing costs. 8. Applied overhead on the basis of 140 percent of direct labor costs. 9. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $41,300. 10. Recognized depreciation of $26,300 on manufacturing property, plant, and equipment. Required: a. Prepare journal entries to record these transactions. b. The balances that appeared in the accounts of Edwin Parts are shown as follows. Prepare T-accounts to show the flow of costs during the period. \begin{tabular}{|l|l|} \hline Required A & Required B \\ \hline \end{tabular} Prepare T-accounts to show the flow of costs during the period. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Materials Inventory } & \multicolumn{4}{|c|}{ Work-in-Process Inventory } \\ \hline \multicolumn{2}{|l|}{ Debit } & \multicolumn{2}{|c|}{ Credit } & \multicolumn{2}{|l|}{ Debit } & \multicolumn{2}{|r|}{ Credit } \\ \hline \multirow[t]{2}{*}{ Beginning Balance } & 89,900 & & & Beginning Balance & 0 & 00 & \\ \hline & & 3.650 & & 2 & 43,600 & & Goods Completed \\ \hline \multirow[t]{2}{*}{1.0} & 87,200 & 43,600 & 2 & 7. & 66,235 & & \\ \hline & & & & 8. & 92,729 & & \\ \hline \multirow[t]{2}{*}{ Ending Balance } & 129,850 & & & & & & \\ \hline & & & & Ending Balance & 202,564 & & \\ \hline \multicolumn{4}{|c|}{ Manufacturing Overhead Control } & \multicolumn{4}{|c|}{ Applied Manufacturing Overhead } \\ \hline \multicolumn{2}{|l|}{ Debit } & \multicolumn{2}{|c|}{ Credit } & \multicolumn{2}{|l|}{ Debit } & \multicolumn{2}{|r|}{ Credit } \\ \hline Beginning Balance & & & & Beginning Balance & & & \\ \hline 2 & 3,650 & & & & & & \\ \hline 2 & 15,285 & & & & & & \\ \hline 9. & 41,300 & & & \multicolumn{2}{|l|}{ Ending Balance } & & \\ \hline 10. & 26,300 & & & & & & \\ \hline Ending Balance & 86,535 & & & & & & \\ \hline \multicolumn{4}{|c|}{ Accounts Payable } & \multicolumn{4}{|c|}{ Cash } \\ \hline Debit & & Cre & & Debit & & & Credit \\ \hline Beginning Balance & & & & Beginning Balance & & & \\ \hline & & & & & 00 & 87,200 & 2 \\ \hline & & & & & & 44,900 & 2 \\ \hline Ending Balance & & & & & & 41,300 & 2 \\ \hline & & & & Ending Balance & & 173,400 & \\ \hline & Payroll & & & & Payroll Taxe & Payable & \\ \hline Debit & & Cre & & Debit & & & Credit \\ \hline Beginning Balance & 00 & 101,900 & & Beginning Balance & & & \\ \hline & 22,300 & & & & & 22,300 & 5. \\ \hline & 44,900 & & & & & & \\ \hline 8 & 34,700 & & & Ending Balance & & 22,300 & \\ \hline Ending Balance & & & & & & & \\ \hline Frin & ge Benefits Pa & yyable & & Admi & nistrative and & Marketing Cos & \\ \hline Debit & & Credit & & Debit & & & Credit \\ \hline Beginning Balance & & & & Beginning Balance & & & \\ \hline & 00 & 34,700 & 2 & 2 & 20,380 & & \\ \hline Ending Balance & & 34,700 & & Ending Balance & 20,380 & & \\ \hline Accumulated Deprec & iation-Property & Plant, and E & Equipment & & Finished & Soods & \\ \hline Debit & & Cre & & Debit & & & Credit \\ \hline Beginning Balance & & & & Beginning Balance & 102,600 & & \\ \hline & & 26,300 & 10. & Goods Completed & 145,400 & 154,800 & cos \\ \hline Ending Balance & & 26,300 & & Ending Balance & 93,200 & & \\ \hline & ost of Goods S & iold & & & & & \\ \hline Debit & & Cre & & & & & \\ \hline Beginning Balance & 00 & & & & & & \\ \hline Goods Sold & 154,800 & & & & & & \\ \hline Ending Balance & 154,800 & & & & & & \\ \hline \end{tabular} Required A Required B

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