Hello I was wondering if someone could look at my work and address any issues with corrections and explanations.

I have attached both the question and the solutions that I came up with.

Thank you,

epeck4

Case #1: Teacher Products Inc. produces stars for elementary teachers to reward their students. Teacher Products' trial balance on September 1 follows: September 1 balances in the subsidiary ledgers were: Materials sub-ledger: $4,600 paper and $1,400 indirect WIP sub-ledger - job 120 $39,500; $0 for job 121 Finished goods sub-ledger - $7,900 large stars and $12,300 small stars September transactions are summarized as follows: 1. Collections on account, $153,000 2. Marketing and general expenses incurred and paid, $28,000 3. Payments on account, $41,000 4. Materials purchases on credit: paper, $4,600; indirect materials, $4,600 5. Materials used in production (requisitioned): Job 120: paper, $800 Job 121: paper, $7,650 Indirect materials, $1,800 6. Manufacturing wages incurred during September, $37,000, of which $34,300 was paid. Wages payable at August 31 were paid during September, $2,900 7. Labor time records for the month: Job 120, $3,700; Job 121, $18,800; indirect labor, $14,500 8. Depreciation on plant and equipment, $3,300 9. Manufacturing overhead was allocated at the predetermined rate of 80% of direct labor cost 10. Jobs completed during the month: Job 120, 800,000 Large Stars at total cost of $46,960 11. Credit sales on account: all of Job 120 for $105,000 12. Closed the MOH account to COGS. Requirements: 1. Record the September transactions. Teachers Products uses a perpetual inventory system. Number the transactions. 2. Prepare a trial balance at September 30. 3. Prepare a Cost of Goods Manufactured Statement for September. 4. Prepare an income statement for the month of September. 1.) 2.) 3.) Case #1 1.) Perpetual Inventory Journal Entries Cash Accounts Receivables Marketing and General expenses Cash Accounts Payable Cash 4.) Inventory- Direct Materials (Paper) Inventory- Materials (indirect) Accounts Payable WIP-Materials (Job 120: paper) WIP-Materials (Job 121: Paper) WIP-Materials (indirect) Inventory- Materials MOH Cash or wages payable 5.) 6.) 7.) WIP-Job 120 WIP-Job 121 WIP-Indirect Labor Wages Payables 8.) MOH Accumulated Depreciation 9.) Work-In-Process MOH allocated MOH Control 4,600 Under or over allocated? 1,800 2,700 Compare w: 153,000 153,000 28,000 28,000 41,000 41,000 4,600 4,600 9,200 800 7,650 1,800 10,250 2,700 2,700 3,700 18,800 14,500 37,000 3,300 3,300 29,600 29,600 Actual MOH 26,900 Allocated MOH 29,600 14,500 3,300 26900 10.) Finished Goods (Job 120) Large Stars (2,700) 46,960 46,960 Work-In-Process 11.) 12.) Accounts Receivables (all of Job 120) Sales Revenue MOH Allocated MOH COGS (37,000 x .8) 105,000 105,000 29,600 26,900 2,700 37,000 wages incurred 34,300 paid 2,700 2.) Prepare Trial Balance at September 30. Trial Balance September 30, 2010 Account Title Debit Cash 99,000 Accounts Receivable 137,000 Inventories: Materials 15,200 Work in process Finished goods Plant assets Credit (7,460) 67,160 270,000 Accumulated depreciation 79,300 Accounts Payable 97,200 Wages Payable 5,600 Common Stock 145,000 Retained Earnings 182,800 Sales Revenue Cost of Goods Sold Manufacturing wages 105,000 Manufacturing overhead Marketing and general expenses 6,000 28,000 614,900 614,900 3.) Prepare a Cost of Goods Manufactured Statement for September. Direct Materials: Beginning Inventory 4,600 add: Purchases 4,600 Cost of DM available for use 9,200 Less: Ending Inventory 4,600 Direct Materials Used 4,600 Direct Manufacturing Labor 37,000 MOH Costs: Indirect Manufacturing labor 14,500 Depreciation 3,300 Total MOH costs 17,800 Mfg Costs Incurred 59,400 Add: Beg WIP Inventory 39,500 Total MFG Costs To account for 98,900 Less: Ending WIP inventory 10,250 COG Manufactured 88,650 4.) Prepare income statement for the month of September Teacher Products Inc. Income Statement Month Ended September 30, 2010 105,00 Revenues 0 COGS: Beg FG Inventory 67,160 add: COG mfgtd 88,650 COGAS 155,810 Less: FG Inventory 155,81 COGS 0 Gross Margin/GP -50,810 Operating costs: Mktg & gen. Exp. 28,000 Total operating costs 28,000 Net Income -78,810