Journal Entry:
a. Record the purchase of materials ( on credit )
b. Record direct materials used in production.
c. Record the usage of indirect materials
d. Record the cost of direct labor incurred but not yet paid. ( Use "Factory wages payable" account)
e. Record the cost of indirect labor incurred but not yet paid. ( Use "Factory wages payable" account)
f. Record the payment of the total factory payroll
g. Record the cost of other factory overhead costs ( credit Other accounts)
h. Record the application of overhead at a rate of 150% of direct materials costs (Cutting) and 120% of direct labor cost (Stitching)
i. Record the transferred costs of partially completed goods
j. Record the transfer of production to finished goods, as calculated on the Cost of Goods Manufactured tab.
k. Record the cost of goods sold, as calculated on the costs of goods sold tab
i. Record the sale of goods on account.
Ch 03 GL P3-1a i Saved Help Save & Exit Subm Check my work 1 Panzarella Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: 15 points Beginning Inventory $146,000 323,500 343, 300 300,100 Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Ending Inventory $177,850 65,500 200,500 64,250 Skipped The following additional information describes the company's production activities for May. eBook $165,000 Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching 28,750 Print 0 References Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 29,600 118,400 208,600 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $104,400 60,600 75,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $1,456,000 Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Verify the ending balance in raw materials inventory. Enter the amount of materials used as negative values. Beginning Raw Materials Inventory Materials available for use Ending raw material inventory Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Prepare a schedule of cost of goods manufactured for Panzarella Company for the month of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Prepare a schedule of cost of goods manufactured for Panzarella Company for the month of May. Dates: Apr 30 to: Apr 30 Total manufacturing costs added during May Total cost of work in process Cost of Cost of General General Raw Cost of Requirement Trial Balance Goods Mfg Goods Mfg Gross Profit Journal Ledger Materials Goods Sold Cutting Stitching Calculate the value of cost of goods sold for the month of May. Ignore any over- or underapplied overhead in the calculation of cost of goods sold. Dates: Apr 30 to: Apr 30 Calculate cost of goods sold: Cost of goods available for sale Cost of goods sold Requirement General Journal General Ledger Trial Balance Raw Materials Cost of Goods Mfg Cutting Cost of Goods Mfg Stitching Cost of Goods Sold Gross Profit Calculate the value of gross profit for the month of May. Dates: Apr 30 to: Apr 30 Gross Profit Cost of Goods Sold Gross Profit
