Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. 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, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. g. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. 1. Depreciation on office equipment, $800; on sales vehicles, $1,650. j. Legal fees 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. I. Cost of jobs completed during the month, $160,000. 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: 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. Materials 60,100 Accounts Payable 60,100 b. Work in Process 50,000 V Overhead Control 8,800 Materials 58,800 Work in Process 75,000 Overhead Control 36,000 Administrative Expense 28,000 Selling Expense 19,000 Wages Payable 158,000 d. Overhead Control 10,400 Accumulated Depreciation 10,400 e. Overhead Control 1,450 Property Taxes Payable 1,450 f. Overhead Control 6,200 Prepaid Insurance 6,200 Overhead Control 9. 5,500 Utilities Pavable Fenn. Selling Expense 1,650 Accumulated Depreciation 2.150 1. 7507 Administrative Expense Accounts Payable 750 k Work in Process 72.000 Overhead Control 72,000 Finished Goods 160.000 Work in Process 160,000 Feedback Why WAS Consider cach line of data to determine which accounts are affected and whether the account is to be debited or credited. 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. Materials Inventory 58,8007 7,500 60,100 0) X Balance 8,800 Chunky Set up T-accounts and consider the information thet pertains to Overheed Control, Work-in-process, Materials, and Finished Goods account. The use of T-accounts would provide a good picture of belances and transactions for the required reporting. Remember to focus decreasing sice? This will be helpful when posting the foumalized transactions. Work in Process Inventory 160,000 37,000 50,000 75,000 72,000 74,000 Balance Feedback Finished Goods Inventory 50,000 100,000 Balance 210,000 IH 8,800 72,000 36,000 10,400 1,450 6,200 5,500 Balance 3,650 Feedback Check My Work Set up T-accounts and consider the information that pertains to Overhead Control, Work-in-process, Materials, and Finished Goods account. The use of T-accounts would decreasing side? This will be helpful when posting the journalized transactions. 3. Prepare a statement of cost of goods manufactured. Jerico Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20XX Direct materials $ 50,000 Direct labor 75,000 Overhead: Overhead applied X Cost of goods manufactured X Beginning work in process X Manufacturing costs added $ Cost of goods manufactured $ 160,000 Feedback Check My Work Review what you have learned in the chapter. 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 $ Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job-order requisitions: direct materials, $50,000; indirect materials, $8,800. 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, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. g. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. 1. Depreciation on office equipment, $800; on sales vehicles, $1,650. j. Legal fees 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. I. Cost of jobs completed during the month, $160,000. 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: 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. Materials 60,100 Accounts Payable 60,100 b. Work in Process 50,000 V Overhead Control 8,800 Materials 58,800 Work in Process 75,000 Overhead Control 36,000 Administrative Expense 28,000 Selling Expense 19,000 Wages Payable 158,000 d. Overhead Control 10,400 Accumulated Depreciation 10,400 e. Overhead Control 1,450 Property Taxes Payable 1,450 f. Overhead Control 6,200 Prepaid Insurance 6,200 Overhead Control 9. 5,500 Utilities Pavable Fenn. Selling Expense 1,650 Accumulated Depreciation 2.150 1. 7507 Administrative Expense Accounts Payable 750 k Work in Process 72.000 Overhead Control 72,000 Finished Goods 160.000 Work in Process 160,000 Feedback Why WAS Consider cach line of data to determine which accounts are affected and whether the account is to be debited or credited. 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. Materials Inventory 58,8007 7,500 60,100 0) X Balance 8,800 Chunky Set up T-accounts and consider the information thet pertains to Overheed Control, Work-in-process, Materials, and Finished Goods account. The use of T-accounts would provide a good picture of belances and transactions for the required reporting. Remember to focus decreasing sice? This will be helpful when posting the foumalized transactions. Work in Process Inventory 160,000 37,000 50,000 75,000 72,000 74,000 Balance Feedback Finished Goods Inventory 50,000 100,000 Balance 210,000 IH 8,800 72,000 36,000 10,400 1,450 6,200 5,500 Balance 3,650 Feedback Check My Work Set up T-accounts and consider the information that pertains to Overhead Control, Work-in-process, Materials, and Finished Goods account. The use of T-accounts would decreasing side? This will be helpful when posting the journalized transactions. 3. Prepare a statement of cost of goods manufactured. Jerico Company Statement of Cost of Goods Manufactured For the Month Ended May 31, 20XX Direct materials $ 50,000 Direct labor 75,000 Overhead: Overhead applied X Cost of goods manufactured X Beginning work in process X Manufacturing costs added $ Cost of goods manufactured $ 160,000 Feedback Check My Work Review what you have learned in the chapter. 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 $