Principles of Cost Accounting Portfolio Project
The Pullman Inc, a segment of Sysco Holdings manufactures chain hoists. The raw materials inventories on hand on October 1 were as follows:
|
Chain
|
12,000 lb, $24,000
|
|
Pulleys
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4,000 sets, $20,000
|
|
Bolts and taps
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10,000 lb, $5,000
|
|
Steel plates
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4,000 units, $2,000
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The balances in the ledger accounts on October 1 were as follows:
|
Cash
|
$ 12,000
|
|
|
Work in process
|
35,000
|
|
|
Materials
|
51,000
|
|
|
Prepaid insurance
|
3,000
|
|
|
Machinery
|
125,000
|
|
|
Accumulated depreciation-machinery
|
|
$ 10,500
|
|
Office equipment
|
30,000
|
|
|
Accumulated depreciation-office equipment.......
|
|
4,800
|
|
Office furniture
|
20,000
|
|
|
Accumulated depreciation-office furniture
|
|
2,500
|
|
Accounts payable
|
|
30,000
|
|
Capital stock
|
|
182,200
|
|
Retained earnings
|
|
46,000
|
|
$276,000
|
$276,000
|
Transactions during October were as follows:
A. Payroll recorded during the month: direct labor, $28,000; indirect labor, $3,000.
B. Factory supplies purchased for cash, $1,000. (Use a separate inventory account, Factory Supplies.)
C. Materials purchased on account: chain-4,000 lb, $8,800; pulleys-2,000 sets, $10,200; steel plates-5,000 units, $3,000.
D. Sales on account for the month, $126,375.
E. Accounts receivable collected, $72,500.
F. Materials used during October (FIFO costing): chain, 14,000 lb; pulleys, 4,400 sets; bolts and taps, 4,000 lb; steel plates, 3,800 units.
G. Payroll paid, $31,000.
H. Factory supplies on hand, October 31, $350.
I. Factory heat, light, and power costs for October, $3,000 (not yet paid).
J. Office salaries paid, $6,000.
K. Advertising paid, $2,000.
L. Factory superintendence paid, $1,800.
M. Expired insurance-on office equipment, $100; on factory machinery, $300.
N. Factory rent paid, $2,000.
O. Depreciation on office equipment, $400; on office furniture, $180; on machinery, $1,200.
P. Factory overhead charged to jobs, $11,950.
Q. Work in Process, October 31, $31,000.
R. Cost of goods sold during the month, $84,250.
S. Accounts payable paid, $33,750.
Required: Using Microsoft Excel complete the following tasks:
1. Set up T-accounts and enter the balances as of October 1.
2. Prepare journal entries to record each of the transactions A-S.
3. Post the journal entries to the accounts, setting up any new ledger accounts necessary. Only controlling accounts are to be maintained; however, show the calculation for the cost of materials used.
4. Prepare a statement of cost of goods manufactured for October.