PROBLEM 5-3 TRANSACTIONS WORK-IN PROCESS I Quantity scheduled for production 48,000 1. Issued common stock receiving $5,000,000 2. Raw material purchased $175,000 aw material transferred to work-in process $132,000 $132,000 4. Direct labor 2,000 hours @ 20$ hour @ 205 hou Applied manufacturing overhead $20 per direct labor hour ransferred to work-in-process I1 36,000 units copemai i inventory are 12,000 units 2/3 complete for raw material and 1/3 for conversion costs TRANSACTIONS WORK-IN-PROCESS II 8. Raw materials purchased $200,000 9. Raw 10. Direct labor 2000 hours@14 hour 11 Applied manufacturing overhead $10 per direct labor hour 12. Transferred to finished goods 20,000 units 13, Remaining in inventory 16,000 units 100% complete for raw materials and 50% percent complete as to conversion costs OPERATING TRANSACTIONS 14. Sold 5000 units at 4 times unit cost 15. Selling expenses are 10% of sales 16. Administrative expenses $75,000 17. Actual manufacturing overhead paid in cash $24,000 REQUIRED: Prepare required journal entries Post to ledger all manufacturing accounts Prepare cost of goods manufactured statement Prepare cost of goods sold statement Prepare income statement 1. 2. 3. 4. 5. 162 | P PROBLEM 5-3 TRANSACTIONS WORK-IN PROCESS I Quantity scheduled for production 48,000 1. Issued common stock receiving $5,000,000 2. Raw material purchased $175,000 aw material transferred to work-in process $132,000 $132,000 4. Direct labor 2,000 hours @ 20$ hour @ 205 hou Applied manufacturing overhead $20 per direct labor hour ransferred to work-in-process I1 36,000 units copemai i inventory are 12,000 units 2/3 complete for raw material and 1/3 for conversion costs TRANSACTIONS WORK-IN-PROCESS II 8. Raw materials purchased $200,000 9. Raw 10. Direct labor 2000 hours@14 hour 11 Applied manufacturing overhead $10 per direct labor hour 12. Transferred to finished goods 20,000 units 13, Remaining in inventory 16,000 units 100% complete for raw materials and 50% percent complete as to conversion costs OPERATING TRANSACTIONS 14. Sold 5000 units at 4 times unit cost 15. Selling expenses are 10% of sales 16. Administrative expenses $75,000 17. Actual manufacturing overhead paid in cash $24,000 REQUIRED: Prepare required journal entries Post to ledger all manufacturing accounts Prepare cost of goods manufactured statement Prepare cost of goods sold statement Prepare income statement 1. 2. 3. 4. 5. 162 | P