Question
The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2019: Beginning Ending Inventories: Raw materials $17,000 $19,000 Work
The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2019:
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| Beginning |
| Ending |
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| Inventories: |
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| Raw materials |
| $17,000 |
| $19,000 |
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| Work in process |
| 9,000 |
| 14,000 |
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| Finished goods |
| 11,000 |
| 8,000 |
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| Total |
| $37,000 |
| $41,000 |
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In addition, the following transactions occurred in 2019:
| 1. |
| Raw materials purchased on account, $75,000. |
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| 2. |
| Incurred factory labor, $80,000, all is direct labor. (Credit Factory Wages Payable). |
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| 3. |
| Incurred the following overhead costs during the year: Utilities $6,800, Depreciation on manufacturing machinery $8,000, Manufacturing machinery repairs $9,200, Factory insurance $9,000 (Credit Accounts Payable and Accumulated Depreciation). |
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| 4. |
| Assigned $80,000 of factory labor to jobs. |
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| 5. |
| Applied $36,000 of overhead to jobs |
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Reproduce the manufacturing cost and inventory accounts. Use T-accounts. (Post entries in the order of journal entries presented in the previous question.)
| Raw Materials Inventor |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Finished Goods Inventor |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Manufacturing Overhea |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Work in Process Inventor |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
|
| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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| Bal.(1)(2)(3)(4)(5) |
| Bal.(1)(2)(3)(4)(5) |
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