Exercise PR3-5B Financial & Managerial Accounting Edition 15

Blue Ribbon Flour Company Cost of Production Report - Sifting Department For the Month Ended May 31 UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, May 1 Received from Milling Department Total units accounted for by the Sifting Department Units to be assigned cost: Transferred to Packaging Department in May Inventory in process, May 31 ( complete) Total units to be assigned cost COSTS Costs Cost per equivalent unit Total costs for May in Sifting Department Total equivalent units + Cost per equivalent unit Costs charged to production: Inventory in process, May 1 Costs incurred in May Total costs accounted for by the Sifting Department Costs allocated to completed and partially completed units: Transferred to Packaging Department in May Inventory in process, May 31 Total costs assigned by the Sifting DepartmentReece Financial Services Co. Unadjusted Trial Balance July 31, 20Y9 Debit Credit Balances Balances Cash . . . . . . . . . ..... 10,200 Accounts Receivable. ... 34,750 Prepaid Insurance . . . 6,000 Supplies ..... ...... 1,725 Land . . .... 50,000 Building .... .. . . 155,750 Accumulated Depreciation-Building. ........... 62,850 Equipment. ..... . . . . . . . . .. . . ... . . .... 45,000 Accumulated Depreciation-Equipment ........ 17,650 Accounts Payable . . .. .... 3,750 Unearned Rent ... 3,600 Common Stock .. 60,000 Retained Earnings 93,550 Dividends ... 8,000 Fees Earned. . . . . .. . . 158,600 Salaries and Wages Expense. 56,850 Utilities Expense . .... 14,100 Advertising Expense 7,500 Repairs Expense. ..... 6,100 Miscellaneous Expense. 4,025 400,000 400,000 The data needed to determine year-end adjustments are as follows: Depreciation of building for the year, $6,400. Depreciation of equipment for the year, $2,800. Accrued salaries and wages at July 31, $900. Unexpired insurance at July 31, $1,500. Fees earned but unbilled on July 31, $10,200. Supplies on hand at July 31, $615. Rent unearned at July 31, $300. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense-Building; Depreciation Expense-Equipment; and Supplies Expense. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance