Journal Entries, Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Sylvana Company: a Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,700. c. Payroll for the month: direct labor, $75,000; Indirect labor, $36,000; administrative, $28,000, sales, $19,000. d. Depreciation on factory plant and equipment, $10,500 e. Property taxes on the factory accrued during the month, $1,450 1. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. 9. Factory utilities, 55,500 h. Advertising paid with cash, 57,900 1. Depreciation on office equipment, $800; on sales vehicles, $1,650. 1. Legal feet incurred but not yet paid for preparation of lease agreements, $750. k Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the month 1. Cost of jobs completed during the month, $150,000. The company also reported the following beginning balances Irits inventory accounts: Materials Inventory $7,500 Work-In-Process Inventory 37,000 Finished Goods Inventory 50,000 Required: 1. Prepare journal entries to record the transactions occurring in May. For a compound transaction, if an amount box does not require an entry, leave it blank 1. Prepare journal entries to record the transactions occurring in May, For a compound transaction, if an amount box does not require an entry, leave it blank III Iu11 III 0 0 0 0 B III d 9 h I. HII 0 I ll 1.0 2. Prepare T-accounts for Materials Inventory, Overhead Control, Work in Process Inventory, and finished Goods Inventory Post the entries to the account in the same order in which they were journalized 2. Prepare T-accounts for Materials inventory, Overhead Control, Work-in-Process Inventory, and finished Goods Inventory. Post the entries to the Troccount in the same order in which they were foumalized. Materials Inventory Balance Work in Process Inventory Balance Finished Goods Inventory Balance Overhead Control Inventory 3. Prepare a statement of cost of goods manufactured Sylvana Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20XX Overhead: W010 b) Manufacturing costs added Cost of goods manufactured 4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase by
