Managerial Accounting Chapter M:2

Teacher Stars produces stars for elementary teachers to reward their students. Teacher Stars' trial balance on June 1 follows: a (Click the icon to View the trial balance.) June 1 balances in the subsidiary ledgers were as follows: 0 (Click the icon to view the balances.) X Data Table E........ Teacher Stars Trial Balance June 1, 2024 Balance Account Title Debit Credit Cash $ 19,000 Accounts Receivable 150,000 Inventories: Raw Materials 5,900 Work-in-Process 39,400 Finished Goods 21, 100 Property, Plant, and Equipment 230,000 Accumulated Depreciation $ 72,000 Accounts Payable 129,000 Wages Payable 1,800More Info Raw Materials Inventory subsidiary ledger: Paper, $4,100; indirect materials, $1,800 Work-in-Process Inventory subsidiary ledger: Job 120, $39,400; Job 121, $0 Finished Goods Inventory subsidiary ledger: Large Stars, $9,100; Small Stars, $12,000 June transactions are summarized as follows: (Click the icon to view the transactions. ) Read the requirements.More Info a. Collections on account, $150,000. b. Selling and administrative expenses incurred and paid, $30,000. c. Payments on account, $41,000. d. Materials purchased on account: Paper, $24,500; indirect materials, $3,800. 9. Materials requisitioned and used in production: Job 120: Paper, $ 450 Job 121: Paper, $ 7,600 Indirect materials, $ 1 ,600 f. Wages incurred during June, $42,000. Labor time records for the month: Job 120, $3,700; Job 121, $17,500; indirect labor, $20,800. 9. Wages paid in June include the balance in the Wages Payable at May 31 plus $39,100 of wages incurred during June. h. Depreciation on plant and equipment, $3,000. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 60% of direct labor costs. j. Jobs completed during the month: Job 120 with 900,000 Large Stars at a total cost of $45,770. k. Sales on account: all of Job 120 for $115,000. I. Adjusted for overallocated or underallocated manufacturing overhead. Requirements . Journalize the transactions for the company. . T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger have been opened for you along with each account's balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference. . Prepare a trial balance at June 30, 2024. . Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June. 5. Prepare an income statement for the month of June. Requirement 1. Journalize the transactions for the company. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Collections on account, $150,000 Date Accounts Debit Credit a. b. Selling and administrative expenses incurred and paid, $30,000 Date Accounts Debit Credit b.c. Payments on account, $41,000 Date Accounts Debit Credit C. d. Materials purchased on credit: Paper, $24,500; indirect materials, $3,800 (Prepare a single journal entry for this event.) Date Accounts Debit Credit d. e. Materials requisitioned and used in production: Job 120: Paper, $450, Job 121: Paper, $7,600, Indirect materials, $1,600 (Prepare a single journal entry for this event.) Date Accounts Debit Creditf. Wages incurred during June, $42,000. Labor time records for the month: Job 120, $3,700; Job 121, $17,500; indirect labor, $20,800 (Prepare a single journal entry for this event.) Date Accounts Debit Credit f. g. Wages paid in June include the balance in the Wages Payable account at May 31 plus $39,100 of wages incurred in June. Date Accounts Debit Credit g. h. Depreciation on plant and equipment, $3,000 Date Accounts Debit Credit h.i. Manufacturing overhead was allocated at the predetermined overhead allocation rate of 60% of direct labor costs. I Credit j. Jobs completed during the month: Job 120, 900,000 Large Stars at total cost of $45,770 k. Sales on account: all of Job 120 for $115,000 Begin by recording the revenue from the sales on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step. Credit Now record the cost of goods sold related to the sale of all of Job 120. I. Adjusted for overallocated or underallocated manufacturing overhead. Date Accounts Debit Credit I.Requirement 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger have been opened for you along with each account's balance as given Post the journal entries to the Taccounts using the transaction letters as a reference. Begin with posting the transactions to the general ledger accounts. Key each transaction by transaction letter, and calculate the ending balance of each account. (Post each entry by entering only one debit or credit to each T-account affected by the transaction. For accounts with a zero balance, enter a '0" along with a "Bal." reference on the normal side of the T-account.) Review the journal entries you prepared in Requirement 1. Cash Accounts Receivable Raw Materials Inventory Bal. 19,000 Bal. 150,000 Bal. 5,900 Work-in-Process Inventory Finished Goods Inventory Property, Plant, and Equipment Bal. 39,400 Bal. 21,100 Bal. 230,000 Accumulated Depreciation Accounts Payable Wages Payable 72,000 Bal. 129,000 Bal. 1,800 Bal. Common Stock Retained Earnings Sales Revenue 146,000 Bal. 116,600 Bal.Cast of Goods Sold Manufacturing Overhead Selling and Admin. Expenses Post the transactions to the Raw Materials Inventory subsidiary ledger accounts. Key each transaction by transaction letter, and calculate the ending balance, "Bal." of each account. (Combine the entries for transaction (e) into one posting.) Paper Indirect Materials Bal. 4,100 Bal. 1,800 Post the transactions to the Work-in-Process Inventory subsidiary ledger accounts. Key each transaction by transaction letter, and calculate the ending balance "Bal.\" of each account. (For accounts with a zero balance, enter a '0" along with a "Bal." reference on the normal side of the T-aocount.) Job 120 Job 121 Bal. 39,400 Post the transactions to the Finished Goods Inventory subsidiary ledger accounts. Key each transaction by transaction letter, and calculate the ending balance \"Bal." of each account. Large stars Small stars Bal. 9,100 Bal. 12,000 Requirement 3. Prepare a trial balance at June 30, 2024. (Leave both the Debit and Credit column cells blank for accounts with a zero balance at June_30;) Review the general ledger accounts you prepared in Requirement 2. Balance Account Title Debit Credit Cash Accounts Receivable Inventories: Raw Materials Work-in-Process Finished Goods Property, Plant and Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Manufacturing Overhead Selling and Administrative Expenses TotalRequirement 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June. Review the Work-In-Process Inventory general ledger account you prepared in Requirement 2. Teacher Stars Schedule of Cost of Goods Manufactured Month Ended June 30, 2024 Cost of Goods ManufacturedRequirement 5. Prepare an income statement for the month of June. Review the trial balance you prepared in Requirement 3. Review the journal entry for underallocated manufacturing overhead you prepared in Requirement 1. H_U_U_ Cost of Goods Sold Gross Prot Net Income (Loss)