Ask Financial Accounting Expert

Assignment

                         Balance Sheet
                        January 1, 2014
Assets
Cash                                          $15,000
Accounts Receivable                     22,000
Prepaid Insurance                        3,000
Material Inventory                        2,000
WIP inventory                             2,900
FG inventory                               1,200
Equipment                                  50,000
(Accum. Dep)                              (10,000)
Total Assets                                $86,100
Liabilities & Equity
Accounts Payable                         $20,000
Wages Payable                            3,000
Property Taxes Payable                1,000
Common Stock                           40,000
Retained Earnings                       22,100
Total Liabilities & Equity               $86,100

Instructions:

1. Open the balances in the general ledger.

2. Post the entries for job order production costs to the general ledger.

3. Prepare a statement of cost of goods manufactured and cost of goods sold, an income statement and a balance sheet.

Entries for Job Order Production Costs

1. Raw Materials Inventory                                                3,650
Accounts Payable                                                                              3,650
            Acquired materials on credit for factory use.
2. Work in Process Inventory                                            1,700
Raw Materials Inventory                                                                     1,700
To assign costs of direct materials used.
3. Factory Overhead                                                        650
Raw Materials Inventory                                                                     650
            To record use of indirect materials.
4. Factory Payroll                                                            5,350
Cash (and other accounts)                                                                 5,350
            To record salaries and wages of factory workers
            (including various payroll liabilities)
5. Work in Process Inventory                                           4,100
Factory Payroll                                                                                  4,100
            To assign cost of direct labor used.
6. Factory Overhead                                                        1,250
Factory Payroll                                                                                  1,250
            To record indirect labor costs as overhead.
7. Factory Overhead                                                        5,100
Cash (and other accounts)                                                                 5,100
            To record factory overhead costs such as insurance, utilities, rent, and depreciation.
8. Work in Process Inventory                                           5,740
Factory Overhead                                                                              5,740
            To apply overhead at 140% of direct labor.
9. Finished Goods Inventory                                            8,980
Work in Process Inventory                                                                  8,980
            To record completion of Jobs B15, B 16, and B17.
10. Cash                                                                        10,600
Sales                                                                                                10,600
            Cost of Goods Sold                                             5,560
                        Finished Goods Inventory                                           5,560
            To record sale of Jobs B15 and B16.

1. What is the ending cash balance?
A. $18,300
B. $26,350
C. $15,150
D. $19,400

2. What is the ending accounts receivable balance?
A. $22,000
B. $19,000
C. $21,000
D. $25,000

3. What is the ending prepaid insurance balance?
A. $1,000
B. $2,000
C. $2,500
D. $3,000

4. What is the ending materials inventory balance?
A. $4,450
B. $3,300
C. $2,700
D. $2,600

5. What is the ending good in process balance?
A. $5,200
B. $4,670
C. $5,150
D. $5,460

6. What is the ending finished goods balance?
A. $4,620
B. $4,950
C. $5,285
D. $4,900

7. What is the ending equipment balance net of accumulated depreciation?
A. $50,000
B. $40,000
C. $35,000
D. $30,000

8. What is the ending accounts payable balance?
A. $19,600
B. $21,500
C. $22,850
D. $23,650

9. What is the ending retained earnings balance?
A. $24,600
B. $25,880
C. $23,900
D. $21,820

10. What is the adjustment to factory overhead?
A. $1,260 debit
B. $1,260 credit
C. $1,350 debit
D. $1,350 credit

11. What is cost of goods sold before the adjustment?
A. $5,560
B. $4,650
C. $5,600
D. $5,750

12. What is cost of goods sold after the adjustment?
A. $6,700
B. $6,300
C. $5,900
D. $6,820

13. What is the cost of goods manufactured?
A. $9,600
B. $9,100
C. $8,200
D. $8,980

14. What is net income?
A. $3,500
B. $3,780
C. $3,200
D. $3,150

15. What is total assets?
A. $93,530
B. $92,900
C. $99,400
D. $91,000

16. What represents the correct order of the job order costing process?
A. supplier, materials, goods in process, finished goods, retail
B. materials, goods in process, retail, finished goods
C. finished goods, materials, goods in process, retail
D. retail, goods in process, materials, finished goods

17. Which account keeps track of the costs on the assembly line?
A. finished goods
B. work in process
C. materials
D. equipment

18. What are prime costs?
A. direct materials + direct labor
B. direct labor + overhead
C. direct labor
D. overhead

19. What are conversion costs?
A. direct materials + direct labor
B. direct labor
C. direct labor + overhead
D. overhead

20. What is the formula for cost of goods manufactured?
A. BWIP + DM + DL + OH applied - EWIP
B. BWIP + DM + DL + OH applied
C. BWIP + DM
D. DM + DL + OH.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M92355866
  • Price:- $30

Priced at Now at $30, Verified Solution

Have any Question?


Related Questions in Financial Accounting

Case study - the athletes storerequiredonce you have read

Case Study - The Athletes Store Required: Once you have read through the assignment complete the following tasks in order and produce the following reports Part 1 i. Enter the business information including name, address ...

Scenario assume that a manufacturing company usually pays a

Scenario: Assume that a manufacturing company usually pays a waste company (by the pound to haul away manufacturing waste. Recently, a landfill gas company offered to buy a small portion of the waste for cash, saving the ...

Lease classification considering firm guidance issues

Lease Classification, Considering Firm Guidance (Issues Memo) Facts: Tech Startup Inc. ("Lessee") is entering into a contract with Developer Inc. ("Landlord") to rent Landlord's newly constructed office building located ...

A review of the ledger of oriole company at december 31

A review of the ledger of Oriole Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $19,404. The company has separate insurance policies on i ...

Chelsea is expected to pay an annual dividend of 126 a

Chelsea is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth 2.6 percent. What is the cost of equity?

Sweet treats common stock is currently priced at 3672 a

Sweet treats common stock is currently priced at $36.72 a share. The company just paid $2.18 per share as its annual dividend. The dividends have been increasing by 2,2 percent annually and are expected to continue doing ...

Highway express has paid annual dividends of 132 133 138

Highway Express has paid annual dividends of $1.32, $1.33, $1.38, $1.40, and $1.42 over the past five years, respectively. What is the average divided growth rate?

An investment offers 6800 per year with the first payment

An investment offers $6,800 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years?  b. What would the value ...

Oil services corp reports the following eps data in its

Oil Services Corp. reports the following EPS data in its 2017 annual report (in million except per share data). Net income $1,827 Earnings per share: Basic $1.56 Diluted $1.54 Weighted average shares outstanding: Basic 1 ...

At the start of 2013 shasta corporation has 15000

At the start of 2013, Shasta Corporation has 15,000 outstanding shares of preferred stock, each with a $60 par value and a cumulative 7% annual dividend. The company also has 28,000 shares of common stock outstanding wit ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As