Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stella Stars produces stars for elementary teachers to June transactions are summarized as follows: reward their students. Stella Stars' trial balance on June (Click the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Stella Stars produces stars for elementary teachers to June transactions are summarized as follows: reward their students. Stella Stars' trial balance on June (Click the icon to view the transactions.) 1 follows: (Click the icon to view the trial balance.) Read the requirements. June 1 balances in the subsidiary ledgers were as follows: (Click the icon to view the balances.) Requirement 1. Journalize the iransactions for the company. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Collections on account. $141.000 Data table Stella Stars Trial Balance June 1, 2016 Balance Account Tifife Debit Credit Cash $25,000 Accounts Receivable 185,000 Inventories: Raw Materials 6,000 Work-in-Process 40,750 Finished Goods 20,700 Plant Assets 220,000 Accumulated Depreciation Accounts Payable Wages Payable Common Stock \$ 69,000133,0003,300139,000 More info - Raw Materials Inventory subsidiary ledger: Paper, $4,300; indirect materials, $1,700 - Work-in-Process Inventory subsidiary ledger: Job 120, $40,750; Job 121, $0 - Finished Goods Inventory subsidiary ledger: Large Stars, $9,000; Small Stars, $11,700 a. Collections on account, $141,000. b. Selling and administrative expenses incurred and paid, $22,000. c. Payments on account, $37,000. d. Materials purchased on account: Paper, $24,500; indirect materials, $4,800. e. Materials requisitioned and used in production: f. Wages incurred during June, $42,000. Labor time records for the month: Job 120, $3,600; Job 121 , $19,000; indirect labor, $19,400. g. Wages paid in June include the balance in the Wages Payable at May 31 plus $40,700 of wages incurred during June. h. Depreciation on plant and equipment, $2,900. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 60% of direct labor cost. j. Jobs completed during the month: Job 120 with 100,000 Large Stars at a total cost of $46,960. k. Sales on account: all of Job 120 for $104,000. I. Adjusted for overallocated or underallocated manufacturing overhead. Requirements 1. Journalize the transactions for the company. 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 T-accounts using the transaction letters as a reference. 3. Prepare a trial balance at June 30, 2016. 4. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions

Question

Design an RL circuit to provide a 90o leading phase shift.

Answered: 1 week ago

Question

What is MSb on your Excel printout?

Answered: 1 week ago