Howie Stars produces starts for elementary teachers to reward their students Howie Stars' trial balance on June 1 follows HOWIE STARS Trial Balance June 1, 2012 Balance Account Title Debit Credit Cash $14,000 Accounts receivable 155,000 Inventories Materials 5,700 Work in process 39,400 Finished goods 20,400 Plant assets 200,000 Accumulated depreciation $72,000 Accounts payable 127,000 Wages payable 1,700 Common stock 142,000 Retained earnings 91,800 Sales revenue Cost of goods sold Manufacturing overhead Marketing and general expenses Total $434,500 434,500 June 1 balances in the subsidiary ledgers were as follows Materials subledger Paper, $4,700 indirect materials, $1,000 Work in process subledger Job 120, $39,400 $0 for Job 121 Finished goods subledger Large Stars, $9,400 Small Stars, $11,000 June transactions are summarized as follows a Collections on account, $152,000 b Marketing and general expenses incurred and paid, $28,000 c Payments on account, $36,000 d Materials purchases on credit Paper, $22,900 indirect materials, $3,800 e Materials used in production (requisitioned) Job 120 paper , $850 Job 121 paper, $7,650 Indirect materials, $1,000 f Wages incurred and assigned during June, $35,000 Labor time records for the month Job 120, $3,500 Job 121, $16,600 indirect labor, $14,900 g Wages paid in June include the balance in the Wages payable account at May 31 and $32,200 of wages incurred during June h Depreciation on plant and equipment, $2,600 i Manufacturing overhead was allocated at the predetermined rate of 50 of direct labor cost j Jobs completed during the month Job 120, 300,000 Large Stars at total cost of $45,500 k Credit sales on account all of Job 120 for $111,000 l Closed the Manufacturing overhead account to Cost of goods sold Requirements 1 Journalize the transactions for the company Howie uses a perpetual inventory system 2 Open T accounts for the general ledger, the Materials ledger, the Work in process ledger, and the Finished goods ledger Insert each account balance as given, and use the reference Bal Post the journal entries to the T accounts using the transaction letters as a reference 3 Prepare a trial balance at June 30, 2012 4 Use the Work in process inventory T account to prepare a schedule of cost of goods manufactured for the month of June 5 Prepare an income statement for the month of June

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Howie Stars produces starts for elementary teachers to reward their students  Howie Stars' trial balance on June 1 follows  HOWIE STARS Trial Balance June 1, 2012 Balance Account Title Debit Credit Cash $14,000 Accounts receivable 155,000 Inventories  Materials 5,700 Work in process 39,400 Finished goods 20,400 Plant assets 200,000 Accumulated depreciation $72,000 Accounts payable 127,000 Wages payable 1,700 Common stock 142,000 Retained earnings 91,800 Sales revenue Cost of goods sold Manufacturing overhead Marketing and general expenses Total $434,500 434,500 June 1 balances in the subsidiary ledgers were as follows  Materials subledger  Paper, $4,700  indirect materials, $1,000 Work in process subledger  Job 120, $39,400  $0 for Job 121 Finished goods subledger  Large Stars, $9,400  Small Stars, $11,000 June transactions are summarized as follows  a  Collections on account, $152,000  b  Marketing and general expenses incurred and paid, $28,000  c  Payments on account, $36,000  d  Materials purchases on credit  Paper, $22,900  indirect materials, $3,800  e  Materials used in production (requisitioned)  Job 120  paper , $850 Job 121  paper, $7,650 Indirect materials, $1,000 f  Wages incurred and assigned during June, $35,000  Labor time records for the month  Job 120, $3,500  Job 121, $16,600  indirect labor, $14,900  g  Wages paid in June include the balance in the Wages payable account at May 31 and $32,200 of wages incurred during June  h  Depreciation on plant and equipment, $2,600  i  Manufacturing overhead was allocated at the predetermined rate of 50  of direct labor cost  j  Jobs completed during the month  Job 120, 300,000 Large Stars at total cost of $45,500  k  Credit sales on account  all of Job 120 for $111,000  l  Closed the Manufacturing overhead account to Cost of goods sold  Requirements  1  Journalize the transactions for the company  Howie uses a perpetual inventory system  2  Open T accounts for the general ledger, the Materials ledger, the Work in process ledger, and the Finished goods ledger  Insert each account balance as given, and use the reference Bal  Post the journal entries to the T accounts using the transaction letters as a reference  3  Prepare a trial balance at June 30, 2012  4  Use the Work in process inventory T account to prepare a schedule of cost of goods manufactured for the month of June  5  Prepare an income statement for the month of June

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Howie Stars produces starts for elementary teachers to reward their students. Howie Stars' trial balance on June 1 follows: HOWIE STARS Trial Balance June 1,

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Howie Stars produces starts for elementary teachers to reward their students. Howie Stars' trial balance on June 1 follows:

HOWIE STARS Trial Balance June 1, 2012
		Balance
	Account Title	Debit	Credit
	Cash	$14,000
	Accounts receivable	155,000
	Inventories:
	Materials	5,700
	Work in process	39,400
	Finished goods	20,400
	Plant assets	200,000
	Accumulated depreciation		$72,000
	Accounts payable		127,000
	Wages payable		1,700
	Common stock		142,000
	Retained earnings		91,800
	Sales revenue
	Cost of goods sold
	Manufacturing overhead
	Marketing and general expenses
	Total	$434,500	434,500

June 1 balances in the subsidiary ledgers were as follows:
Materials subledger: Paper, $4,700; indirect materials, $1,000
Work in process subledger: Job 120, $39,400; $0 for Job 121
Finished goods subledger: Large Stars, $9,400; Small Stars, $11,000

June transactions are summarized as follows:
a. Collections on account, $152,000.
b. Marketing and general expenses incurred and paid, $28,000.
c. Payments on account, $36,000.
d. Materials purchases on credit: Paper, $22,900; indirect materials, $3,800.
e. Materials used in production (requisitioned): Job 120: paper , $850 Job 121: paper, $7,650 Indirect materials, $1,000
f. Wages incurred and assigned during June, $35,000. Labor time records for the month: Job 120, $3,500; Job 121, $16,600; indirect labor, $14,900.
g. Wages paid in June include the balance in the Wages payable account at May 31 and $32,200 of wages incurred during June.
h. Depreciation on plant and equipment, $2,600.
i. Manufacturing overhead was allocated at the predetermined rate of 50% of direct labor cost.
j. Jobs completed during the month: Job 120, 300,000 Large Stars at total cost of $45,500.
k. Credit sales on account: all of Job 120 for $111,000.
l. Closed the Manufacturing overhead account to Cost of goods sold.

Requirements:
1. Journalize the transactions for the company. Howie uses a perpetual inventory system.
2. Open T-accounts for the general ledger, the Materials ledger, the Work in process ledger, and the Finished goods ledger. Insert each account balance as given, and use the reference Bal. Post the journal entries to the T-accounts using the transaction letters as a reference.
3. Prepare a trial balance at June 30, 2012.
4. Use the Work in process inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.
5. Prepare an income statement for the month of June.