P4-7

Exam Cost Analisit

The cost accounting cycle. The Hopkins \& White Company's January 1 account balances are: During January, the following transactions were completed: (a) Materials purchased on account, $92,000. (b) Miscellaneous factory overhead incurred on account, $18,500. (c) Lobor accumulated and distributed using a payroll account, was consumed as follows: for direct, production $60.500; indirect labor, $12,500; sales salaries, $8,000; administrative salaries, $5,000.9.5% of the wages is withheld for income tax. The state and federal unemployment tax rates are 2.7% and .8%, respectively; the employer and employee FICA tax rate is 7.5% each. The total accrued payroll was paid. (d) Materials were consumed as follows: direct materials, $82,500; indirect materials, $8,300. (e) Factory overhead charged to production was $47,330. (f) Work finished and placed in stock cost $188,000. (g) All but $12,000 of the finished goods were sold, terms 2/10, n/60. The markup was 30% above production cost. The sale and the receivable are recorded in the gross amount. (h) Of the total accounts receivable, 80% was collected, less 2% discount. (Round to the nearest dollar.) (i) A liability was recorded for various marketing and administrative expenses totaling $30,000. Of this amount, 60% was marketing and 40% was administrative. (j) The check register showed payments of $104,000 for liabilities other than payrolls. Required: (1) Prepare T accounts with January 1 balances. (2) Prepare journal entries and post January fransactions into the ledger accounts. Open new accounts a needed. (3) Prepare a trial balance as of January 31. The cost accounting cycle. The Hopkins \& White Company's January 1 account balances are: During January, the following transactions were completed: (a) Materials purchased on account, $92,000. (b) Miscellaneous factory overhead incurred on account, $18,500. (c) Lobor accumulated and distributed using a payroll account, was consumed as follows: for direct, production $60.500; indirect labor, $12,500; sales salaries, $8,000; administrative salaries, $5,000.9.5% of the wages is withheld for income tax. The state and federal unemployment tax rates are 2.7% and .8%, respectively; the employer and employee FICA tax rate is 7.5% each. The total accrued payroll was paid. (d) Materials were consumed as follows: direct materials, $82,500; indirect materials, $8,300. (e) Factory overhead charged to production was $47,330. (f) Work finished and placed in stock cost $188,000. (g) All but $12,000 of the finished goods were sold, terms 2/10, n/60. The markup was 30% above production cost. The sale and the receivable are recorded in the gross amount. (h) Of the total accounts receivable, 80% was collected, less 2% discount. (Round to the nearest dollar.) (i) A liability was recorded for various marketing and administrative expenses totaling $30,000. Of this amount, 60% was marketing and 40% was administrative. (j) The check register showed payments of $104,000 for liabilities other than payrolls. Required: (1) Prepare T accounts with January 1 balances. (2) Prepare journal entries and post January fransactions into the ledger accounts. Open new accounts a needed. (3) Prepare a trial balance as of January 31