Question

Bramble Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Bramble uses a job order costing system. On January 1, the T-accounts for some of Bramble’s primary balance sheet accounts were as follows:

Raw Materials Inventory Work in Process Inventory

Beg. 16,400     Beg. 30,900    

               

Finished Goods Inventory Cash

Beg. 27,100     Beg. 31,200    

               

Accounts Receivable Accounts Payable

Beg. 58,500         Beg. 40,800

               

During the year, the following events occurred:

1.Bramble purchased raw materials costing $87,500 on account.

2.Bramble used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Bramble maintains a single Raw Materials Inventory account.)

3.Bramble used 38,100 hours of direct labor. The company’s average direct labor rate was $8 per hour (credit Wages Payable).

4.The company’s only indirect labor cost was the salary of a security guard hired to watch the company’s shop after hours. The guard’s annual salary was $26,200 (credit Wages Payable).

5.Other manufacturing overhead costs the company incurred on account totaled $69,000.

6.Bramble applied $132,000 in manufacturing overhead.

7.The company completed production of goods costing $325,000.

8.The company’s Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead.

9.Sales revenue was $449,000 (all sales were made on account).

10.Bramble collected $407,000 from customers.

11.The company paid accounts payable of $107,000.

12.At year-end, all wages earned during the year had been paid.

(a)

Record the transactions above in the appropriate T-accounts and calculate ending balances. (Post entries in order presented in the problem.)

Answer 1

1. T - Accounts -

2. Closing Balances -