Information on Kwon Manufacturings activities for its first month of operations follows: Purchased $101,700 of raw materials
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Question:
Information on Kwon Manufacturings activities for its first month of operations follows:
- Purchased $101,700 of raw materials on credit.
- Materials requisitions show the following materials used for the month.
Job 201 | $ 49,900 |
---|---|
Job 202 | 25,300 |
Total direct materials | 75,200 |
Indirect materials | 10,320 |
Total materials used | $ 85,520 |
- Time tickets show the following labor used for the month.
Job 201 | $ 40,900 |
---|---|
Job 202 | 14,300 |
Total direct labor | 55,200 |
Indirect labor | 25,900 |
Total labor used | $ 81,100 |
- Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost.
- Transferred Job 201 to Finished Goods Inventory.
- (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201.
- Incurred the following actual other overhead costs for the month.
Depreciation of factory equipment | $ 33,700 |
---|---|
Rent on factory building (payable) | 670 |
Factory utilities (payable) | 970 |
Expired factory insurance | 4,700 |
Total other factory overhead costs | $ 40,040 |
Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance. Raw Materials Inventory Work in Process Inventory Beginning Balance 0 Beginning Balance 0 Ending balance 0 Ending balance 0 Factory Overhead 0 Finished Goods Inventory 0 Beginning Balance Beginning Balance Ending balance 0 Ending balance 0 Cost of Goods Sold 0 Beginning Balance Ending balance 0
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