Fac 2. 50 Points (Suggested Time 25 minutes) The Million Dollar Baby Crib Company generated the following trial balance on December 31, 2012. The company's manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts. Debit Credit Cash . ...- -- . $102.000 75,000 80,000 0 15,000 3.000 Finished goods inventory . Prepaid rent -... - - s 17.000 25,000 50,000 271,000 373.000 Notes payable -..- -....- . . Common stock ...-- Sales - -... -..- Factory payroll ..-... 218.00o 68,000 I 15.000 Factory overhead $736.00O $736.000 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date Materials requisition 21-3010: $10,200 direct materials to job 402 Materials requisition 21-301: $18,600 direct materials to Job 404 Materials requisition 21-3012: $5,600 indirect materials Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: $36,000 direct labor to Job 402 $23,800 direct labor to Job 404 $8,200 indirect labor 2 and 404 are the only units in process at year-end. The predetermined overhead Jobs 40 rate is 300% of direct labor cost. Required Use information on the six source documents to prepare journal entries to assign the following costs. 1. a. Direct materials costs to Goods in Process Inventory. b. Direct labor costs to Goods in Process Inventory c. Overhead costs to Goods in Process Inventory d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account. wo 2. Determine the revised balance of the the entries in part 1. Determine whether there is any un overhead for the year. Prepare the adjusting entry to allocate any over-or under Factory Overhead account after making der-or over applied applied overhead to Cost of Goods Sold. Fac 2. 50 Points (Suggested Time 25 minutes) The Million Dollar Baby Crib Company generated the following trial balance on December 31, 2012. The company's manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts. Debit Credit Cash . ...- -- . $102.000 75,000 80,000 0 15,000 3.000 Finished goods inventory . Prepaid rent -... - - s 17.000 25,000 50,000 271,000 373.000 Notes payable -..- -....- . . Common stock ...-- Sales - -... -..- Factory payroll ..-... 218.00o 68,000 I 15.000 Factory overhead $736.00O $736.000 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date Materials requisition 21-3010: $10,200 direct materials to job 402 Materials requisition 21-301: $18,600 direct materials to Job 404 Materials requisition 21-3012: $5,600 indirect materials Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: $36,000 direct labor to Job 402 $23,800 direct labor to Job 404 $8,200 indirect labor 2 and 404 are the only units in process at year-end. The predetermined overhead Jobs 40 rate is 300% of direct labor cost. Required Use information on the six source documents to prepare journal entries to assign the following costs. 1. a. Direct materials costs to Goods in Process Inventory. b. Direct labor costs to Goods in Process Inventory c. Overhead costs to Goods in Process Inventory d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account
