Question

In: Accounting

The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31,...

  1. The following inventory information is available for Muscat Manufacturing Corporation for the year ended December 31, 2018:

                                                                     Beginning                 Ending

            Inventories:

            Raw materials                                    $68,000                 $76,000

            Work in process                                   36,000                   56,000

            Finished goods                                   44,000                   32,000

Total $148,000         $164,000

In addition, the following transactions occurred in 2018:

1.   Raw materials purchased on account, $280,000.

2.   Incurred factory labor, $320,000, all is direct labor. (Credit Factory Wages Payable).

3.   Incurred the following overhead costs during the year: Utilities $27,200, Depreciation on manufacturing machinery $32,000, Manufacturing machinery repairs $36,800, Factory insurance $36,000 (Credit Accounts Payable and Accumulated Depreciation).

4.   Assigned $320,000 of factory labor to jobs.

5.   Applied $ 140,000 of overhead to jobs.

Instructions

(a)   Journalize the above transactions.

(b)   Reproduce the manufacturing cost and inventory accounts. Use T-accounts.

(c)   From an analysis of the accounts, compute the following:

        1.   Raw materials used.

        2.   Completed jobs transferred to finished goods.

        3.   Cost of goods sold.

        4.   Under- or over applied overhead.

Solutions

Expert Solution



Related Solutions

The following information is available for United Corporation on December 31 for the year just ended....
The following information is available for United Corporation on December 31 for the year just ended. A review of the $12,000 unadjusted balance in the prepaid rent account shows a remaining balance of $8,750 at the end of the year. $2,200 of the television advertising paid for in advance has been used. The yearly depreciation on the building is $150. The yearly depreciation on the equipment is $800. $1,200 of the advertising paid for in advance has been published by...
The following information is available for Kingbird Corporation for the year ended December 31, 2022. Beginning...
The following information is available for Kingbird Corporation for the year ended December 31, 2022. Beginning cash balance $36,000 Accounts payable decrease 3,000 Depreciation expense 85,000 Accounts receivable increase 8,700 Inventory increase 14,100 Net income 298,500 Cash received for sale of land at book value 36,000 Sales revenue 740,500 Cash dividends paid 11,500 Income tax payable increase 4,200 Cash used to purchase building 147,500 Cash used to purchase treasury stock 38,800 Cash received from issuing bonds 203,000 Prepare a statement...
The following information is available for Chenard Corporation for the year ended December 31, 2017. Beginning...
The following information is available for Chenard Corporation for the year ended December 31, 2017. Beginning cash balance $35,000 Accounts payable decrease 3,200 Depreciation expense 76,000 Accounts receivable increase 8,200 Inventory increase 13,000 Net income 269,100 Cash received for sale of land at book value 35,000 Sales revenue 747,000 Cash dividends paid 12,000 Income tax payable increase 4,700 Cash used to purchase building 144,000 Cash used to purchase treasury stock 32,000 Cash received from issuing bonds 206,000 Prepare a statement...
The following information is available for Swifty Corporation for the year ended December 31, 2017: Other...
The following information is available for Swifty Corporation for the year ended December 31, 2017: Other revenues and gains $9,400 Sales revenue $596,100 Other expenses and losses 13,100 Operating expenses 245,900 Cost of goods sold 171,500 Sales returns and allowances 40,000 Other comprehensive income 5,900 Prepare a multiple-step income statement for Swifty Corporation and comprehensive income statement. The company has a tax rate of 30%. This rate also applies to the other comprehensive income.
The following information is available for Skysong Corporation for the year ended December 31, 2022: Collection...
The following information is available for Skysong Corporation for the year ended December 31, 2022: Collection of principal on long-term loan to a supplier $24,000 Acquisition of equipment for cash 19,500 Proceeds from the sale of long-term investment at book value 24,800 Issuance of common stock for cash 21,000 Depreciation expense 25,000 Redemption of bonds payable at carrying (book) value 31,000 Payment of cash dividends 7,700 Net income 33,400 Purchase of land by issuing bonds payable 43,000 In addition, the...
The following information is available for Metlock Corporation for the year ended December 31, 2022: Collection...
The following information is available for Metlock Corporation for the year ended December 31, 2022: Collection of principal on long-term loan to a supplier $33,000 Acquisition of equipment for cash 14,000 Proceeds from the sale of long-term investment at book value 24,900 Issuance of common stock for cash 20,400 Depreciation expense 29,200 Redemption of bonds payable at carrying (book) value 37,200 Payment of cash dividends 6,700 Net income 38,200 Purchase of land by issuing bonds payable 48,500 In addition, the...
The following information is available for Marin Corporation for the year ended December 31, 2022. Beginning...
The following information is available for Marin Corporation for the year ended December 31, 2022. Beginning cash balance $44,000 Accounts payable decrease 3,300 Depreciation expense 83,000 Accounts receivable increase 9,200 Inventory increase 14,500 Net income 255,000 Cash received for sale of land at book value 44,000 Sales revenue 745,000 Cash dividends paid 11,800 Income tax payable increase 4,500 Cash used to purchase building 141,000 Cash used to purchase treasury stock 30,200 Cash received from issuing bonds 230,000 Prepare a statement...
PROBLEM 4: The following information is available for Colaw Corporation for the year ended December 31,...
PROBLEM 4: The following information is available for Colaw Corporation for the year ended December 31, 2012. Beginning cash balance $ 35,000 Accounts payable decrease 3,200 Depreciation expense 152,000 Accounts receivable increase 8,200 Inventory increase 13,000 Net income 269,100 Cash received for sale of land at book value 35,000 Sales 747,000 Cash dividends paid 12,000 Income tax payable increase 4,700 Cash used to purchase building 144,000 Cash used to purchase treasury stock 32,000 Cash received from issuing bonds 130,000 Instructions...
he following information is available for Marin Corporation for the year ended December 31, 2022. Beginning...
he following information is available for Marin Corporation for the year ended December 31, 2022. Beginning cash balance $36,000 Accounts payable decrease 3,400 Depreciation expense 82,000 Accounts receivable increase 9,200 Inventory increase 14,100 Net income 316,000 Cash received for sale of land at book value 36,000 Sales revenue 744,000 Cash dividends paid 11,600 Income tax payable increase 4,600 Cash used to purchase building 142,500 Cash used to purchase treasury stock 30,800 Cash received from issuing bonds 223,000 Prepare a statement...
Chaos Manufacturing had the following financial information for the year ended December 31 2019: Inventory Balances:               ...
Chaos Manufacturing had the following financial information for the year ended December 31 2019: Inventory Balances:                Beginning                    Ending Work in Progress                    $ 90,000                      $ 80,000 Finished Goods                       $ 77,000                      $ 67,000 Raw Materials                        $ 10,000                      $ 10,000 During the year, the budgeted and actual costs were as follows: Note Budget Actual Raw Materials 1       300,000      290,000 Labour 2       540,000      518,000 Depreciation Factory Equipment        72,000         72,000 Depreciation Office Equipment         24,000   ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT