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Basic cost system; journal entries; nancial statements similar to Self-Study Problem 1
The post-closing trial balance of Beamer Manufacturing Co. on April 30 is reproduced as follows: Beamer Manufacturing Co. Post-Closing Trial Balance April 30, 2011 Cash ....................................................$ 25,000
Accounts Receivable ............................. 65,000
Finished Goods ..................................... 120,000
Work in Process .....................................35,000
Materials .................................................18,000
Building ...................................................480,000
Accumulated DepreciationBuilding ..................................................$ 72,000
Factory Equipment .............................. ..220,000
Accumulated DepreciationFactory Equipment . . . .............................66,000
Ofce Equipment ................................ 60,000
Accumulated DepreciationOfce Equipment . . . ...............................36,000
Accounts Payable ................................ .................................................95,000
Capital Stock .................................... .....................................................250,000
Retained Earnings ............................... ..................................................8 504,000
$ 1,023,000 $ 1,023,000
During the month of May, the following transactions took place:
a. Purchased raw materials at a cost of $45,000 and general factory supplies at a cost of $13,000 on account (recorded materials and supplies in the materials account).
b. Issued raw materials to be used in production, costing $47,000, and miscellaneous factory supplies, costing $15,000
c. Recorded the payroll, the payments to employees, and the distribution of the wages and salaries earned for the month as follows: factory wages (including $12,000 indirect labor), $41,000; and selling and administrative salaries, $7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.)
d. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the ofce equipment. The sales and administrative staff uses approximately one-fth of the building for its ofces.
e. Incurred various other expenses totaling $11,000. One-fourth of this amount is allocable to the ofce function.
f. Transferred total factory overhead costs to Work in Process. g. Completed and transferred goods with a total cost of $91,000 to the nished goods storeroom.
h. Sold goods costing $188,000 for $362,000. (Assume that all sales were made on account.)
i. Collected accounts receivable in the amount of $345,000.
j. Paid accounts payable totaling $158,000. Required:
3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)
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