Question
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Sylvana Company: Materials purchased on account,
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold
During May, the following transactions were completed and reported by Sylvana Company:
Materials purchased on account, $60,100.
Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800.
Payroll for the month: direct labor, $75,000; indirect labor, $35,000; administrative, $28,000; sales, $19,000.
Depreciation on factory plant and equipment, $10,500.
Property taxes on the factory accrued during the month, $1,450.
Insurance on the factory expired with a credit to the prepaid insurance account, $6,200.
Factory utilities, $5,500.
Advertising paid with cash, $7,900.
Depreciation on office equipment, $800; on sales vehicles, $1,650.
Legal fees incurred but not yet paid for preparation of lease agreements, $750.
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.
Cost of jobs completed during the month, $150,000.
The company also reported the following beginning balances in its inventory accounts:
Materials Inventory | $7,500 |
Work-in-Process Inventory | 37,000 |
Finished Goods Inventory | 50,000 |
Required:
Question Content Area
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.
a. | CashFinished GoodsLegal Fees PayableMaterialsOverhead Control | - Select - | |
Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods | - Select - | ||
b. | Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | - Select - |
MaterialsOverhead ControlPrepaid InsuranceProperty Taxes PayableSelling Expense | - Select - | - Select - | |
Accumulated DepreciationAdministrative ExpenseCashFinished GoodsMaterials | - Select - | - Select - | |
c. | Prepaid InsuranceProperty Taxes PayableUtilities PayableWages PayableWork in Process | - Select - | - Select - |
Overhead ControlPrepaid InsuranceProperty Taxes PayableUtilities PayableWages Payable | - Select - | - Select - | |
Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods | - Select - | - Select - | |
Prepaid InsuranceProperty Taxes PayableSelling ExpenseUtilities PayableWages Payable | - Select - | - Select - | |
Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | - Select - | |
d. | CashFinished GoodsMaterialsOverhead ControlPrepaid Insurance | - Select - | |
Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods | - Select - | ||
e. | GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable | - Select - | |
Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | ||
f. | GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable | - Select - | |
Finished GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable | - Select - | ||
g. | Finished GoodsMaterialsOverhead ControlPrepaid InsuranceProperty Taxes Payable | - Select - | |
Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | ||
h. | Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | |
Administrative ExpenseCashFinished GoodsMaterialsOverhead Control | - Select - | ||
i. | Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods | - Select - | - Select - |
Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | - Select - | |
Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods | - Select - | - Select - | |
j. | Administrative ExpenseCashFinished GoodsLegal Fees PayableMaterials | - Select - | |
Accounts PayableAccumulated DepreciationAdministrative ExpenseCashFinished Goods | - Select - | ||
k. | Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - | |
MaterialsOverhead ControlPrepaid InsuranceProperty Taxes PayableSelling Expense | - Select - | ||
l. | CashCost of Goods SoldFinished GoodsMaterialsOverhead Control | - Select - | |
Property Taxes PayableSelling ExpenseUtilities PayableWages PayableWork in Process | - Select - |
Question Content Area
2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process Inventory, and Finished Goods Inventory. Post the entries to the T-account in the same order in which they were journalized.
Materials Inventory | |||
---|---|---|---|
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank de70ebff2fa5f8f_2 | Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank de70ebff2fa5f8f_4 |
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank de70ebff2fa5f8f_6 | ||
Balance | fill in the blank de70ebff2fa5f8f_7 |
Question Content Area
Work in Process Inventory | |||
---|---|---|---|
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank e118af0a2fa205d_2 | Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank e118af0a2fa205d_4 |
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank e118af0a2fa205d_6 | ||
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank e118af0a2fa205d_8 | ||
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank e118af0a2fa205d_10 | ||
Balance | fill in the blank e118af0a2fa205d_11 |
Question Content Area
Finished Goods Inventory | |||
---|---|---|---|
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank de92c2f0ff8af85_2 | ||
Balance(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank de92c2f0ff8af85_4 | ||
Balance | fill in the blank de92c2f0ff8af85_5 |
Question Content Area
Overhead Control Inventory | |||
---|---|---|---|
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_2 | (a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_4 |
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_6 | ||
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_8 | ||
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_10 | ||
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_12 | ||
(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l) | fill in the blank 30c1c1fc5faf02d_14 | ||
Balance | fill in the blank 30c1c1fc5faf02d_15 |
Question Content Area
3. Prepare a statement of cost of goods manufactured.
Cost of goods manufacturedDepreciation, plant, and equipmentDirect materialsEnding work in processIndirect laborOverhead appliedSupplies | $- Select - | |
Beginning work in processCost of goods manufacturedDepreciation, plant, and equipmentDirect laborIndirect laborInsurance | - Select - | |
Overhead: | ||
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processOverhead appliedSupplies | $- Select - | |
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processIndirect laborOverhead applied | - Select - | |
Beginning work in processCost of goods manufacturedDepreciation, plant, and equipmentDirect laborDirect materialsEnding work in processOverhead applied | - Select - | |
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processOverhead appliedProperty taxes | - Select - | |
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processOverhead appliedUtilities, factory | - Select - | |
Beginning work in processCost of goods manufacturedDirect laborDirect materialsEnding work in processInsuranceOverhead applied | - Select - | |
$fill in the blank 6ad467f58065f91_17 | ||
Add: Beginning work in processAdd: Cost of goods manufacturedAdd: Depreciation, plant, and equipmentAdd: Direct laborAdd: Direct materialsAdd: Ending work in processAdd: Indirect laborAdd: InsuranceAdd: Overapplied overheadAdd: Supplies | - Select - | |
Beginning work in processCost of goods manufacturedDepreciation, plant, and equipmentDirect laborDirect materialsIndirect laborOverhead applied | - Select - | |
Manufacturing costs added | $fill in the blank 6ad467f58065f91_22 | |
Add: Beginning work in processAdd: Cost of goods manufacturedAdd: Depreciation, plant, and equipmentAdd: Direct laborAdd: Direct materialsAdd: Ending work in processAdd: Indirect laborAdd: InsuranceAdd: Supplies | - Select - | |
Less: Beginning work in processLess: Cost of goods manufacturedLess: Direct laborLess: Direct materialsLess: Ending work in processLess: Indirect laborLess: InsuranceLess: Utilities, factory | - Select - | |
Cost of goods manufactured | $fill in the blank 6ad467f58065f91_27 |
Question Content Area
4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase?
IncreasesDecreases
by $fill in the blank e3b10b005fe2fe5_2
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