Managerial Accounting (ACC 202)

Exam 1

Smith & Co.

Balance Sheet

December 31, 2017

Assets

Cash $15,000

Accounts Receivable 22,000

Prepaid Insurance 3,000

Material Inventory 2,000

WIP inventory 2,900

FG inventory 1,200

Equipment 50,000

(Accum. Dep) (10,000)

Total Assets $86,100

Liabilities & Equity

Accounts Payable $20,000

Wages Payable 3,000

Property Taxes Payable 1,000

Common Stock 40,000

Retained Earnings 22,100

Total Liabilities & Equity $86,100

Instructions:

Open the balances in the general ledger.

Post the entries for job order production costs to the general ledger.

Prepare a statement of cost of goods manufactured and cost of goods sold, an income statement and a balance sheet.

Entries for Job Order Production Costs

Raw Materials Inventory 3,650

Accounts Payable3,650

Acquired materials on credit for factory use.

Work in Process Inventory 1,700

Raw Materials Inventory1,700

To assign costs of direct materials used.

Factory Overhead 650

Raw Materials Inventory650

To record use of indirect materials.

Factory Payroll 5,350

Cash (and other accounts)5,350

To record salaries and wages of factory workers

(including various payroll liabilities)

Work in Process Inventory 4,100

Factory Payroll4,100

To assign cost of direct labor used.

Factory Overhead 1,250

Factory Payroll1,250

To record indirect labor costs as overhead.

Factory Overhead 5,100

Cash (and other accounts)5,100

To record factory overhead costs such as insurance,

utilities, rent, and depreciation.

Work in Process Inventory 5,740

Factory Overhead5,740

To apply overhead at 140% of direct labor.

Finished Goods Inventory 8,980

Work in Process Inventory8,980

To record completion of Jobs B15, B 16, and B17.

Cash 10,600

Cost of Goods Sold 5,560

Finished Goods Inventory 5,560

To record sale of Jobs B15 and B16.

1 What is the ending cash balance?

2 What is the ending accounts receivable balance?

3What is the ending prepaid insurance balance?

4 What is the ending materials inventory balance?

5What is the ending work in process balance?

6 What is the ending finished goods balance?

7 What is the ending equipment balance net of accumulated depreciation?

8 What is the ending accounts payable balance?

9 What is the ending retained earnings balance?

10 What is the adjustment to factory overhead?

11What is cost of goods sold before the adjustment?

12 What is cost of goods sold after the adjustment?

13What is the cost of goods manufactured?

14 What is net income?

15 What is total assets? A

16What represents the correct order of the job order costing process?

17 Which account keeps track of the costs on the assembly line?

18 What are prime costs?

19What are conversion costs?

20What is the formula for cost of goods manufactured?