### is 1000
ALT-MFG-POSTINGS A SUMMARY OF MFG ENTRIES CHAPTER 19 IN ONE EXERCISE SCORE: 0 /22 ASSETS ACCOUNTS RECEIVABLE LIAB OWNER'S EQUITY COST OF GOODS SOLD ACCOUNTS PAYABLE RAW MATERIALS INV WAGES PAYABLE SALARIES PAYABLE FACTORY OVERHEAD Applied WORK IN PROCESS INY DM O DLO 0 0 UTILITIES PAYABLE FINISHED GOODS INV DR Bal-underapplied CR Bal-overapplied 1 Nutron Manufacturing purchased $28.000 of raw materials on account (RM/AP). 2 A total of $18,000 of raw materials were moved to the factory. Of these, $15,000 were direct materials, and $3,000 were indirect materials (WIP.FO/RM). 3 Factory labor costs were $34.000. Of this amount. $30.000 was direct labor and $4,000 was indirect labor (WIP,FO/WP) 4 Factory overhead costs included the factory supervisor's salary of $3.000, factory utility costs of $2.500, and factory depreciation of $4.500 (FO/SP.UP.AD). 5 Applying the overhead: The company applies overhead using the Predetermined Overhead Rate (POR) of 60% of direct labor cost (WIP/FO). 6 A total of $42,000 of finished goods were transferred out of Work in Process, as they were complete and ready for sale (FG/WIP). 7a The company made sales of $50,000 on account (AR/SALES). 7b The cost of goods sold was $28.000. 8 Note that the Factory Overhead account ended up with a nonzero balance. This is usually the case, as the POR is an estimate. At the end of the year, this balance is closed to Cost of Goods Sold. There are two possibilities. If the overhead was underapplied, increase the cost of Goods Sold: COGS FOX If the Factory Overhead is overapplied, the entry is: FO COGS 1000 In the latter case, TOO MUCH overhead cost went to WIP, and the closing entry corrects the COGS. 9 For practice, close the FO account (FO/COGS) ACCUM EPRECIATION DEBIT CREDIT ACCOUNTS RECEIVABLE RAW MATERIALS INV WORK IN PROCESS INV FINISHED GOODS INV ACCUM, DEPRECIATION FACTORY OVERHEAD ACCOUNTS PAYABLE WAGES PAYABLE SALARIES PAYABLE UTILITIES PAYABLE SALES COST OF GOODS SOLD =IF(COUNTIF(FO_DR,B3),1,0) FO 18,000 AR 0 50000 0 0 0 0 3,000 4,000 10,000 1000 28,000 0 0 COGS 1,000 28,000 0 RM 28,000 18,000 0 WP | 34,000 50,000 0 0 0 o WIP 15,000 42,000 30,000 18,000) SP 3,000 FG UP O 42,000 28,000 0 2,500 4,5000