Question

  

Thai Bay’s computer system generated the following trial balance on December 31, 2011. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.

		Debit			Credit
Cash	$	48,000
Accounts receivable		42,000
Raw materials inventory		26,000
Goods in process inventory		0
Finished goods inventory		9,000
Prepaid rent		3,000
Accounts payable				$	10,500
Notes payable					13,500
Share capital—ordinary					30,000
Retained earnings					87,000
Sales					180,000
Cost of goods sold		105,000
Factory payroll		16,000
Factory overhead		27,000
Operating expenses		45,000
Totals	$	321,000		$	321,000

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

Materials requisition 21-3010:		$	4,600	direct materials to Job 402
Materials requisition 21-3011:		$	7,600	direct materials to Job 404
Materials requisition 21-3012:		$	2,100	indirect materials
Labor time ticket 6052:		$	5,000	direct labor to Job 402
Labor time ticket 6053:		$	8,000	direct labor to Job 404
Labor time ticket 6054:		$	3,000	indirect labor

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.

19.

value:
10.00 points

Required information

a.	Direct materials costs to Goods in Process Inventory.
b.	Direct labor costs to Goods in Process Inventory.
c.	Overhead costs to Goods in Process Inventory.
d.	Indirect materials costs to the Factory Overhead account.
e.	Indirect labor costs to the Factory Overhead account.

  

Required:
1.	Prepare journal entries to assign the above costs. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
a.	(Click to select)Raw materials inventoryFactory payrollFinished goods inventoryAccumulated depreciationAccounts payableGoods in process inventoryCost of goods soldFactory overhead
	(Click to select)Goods in process inventoryFinished goods inventoryFactory overheadCost of goods soldAccumulated depreciationAccounts payableFactory payrollRaw materials inventory
b.	(Click to select)Cost of goods soldFactory payrollAccumulated depreciationGoods in process inventoryCashFactory overheadRaw materials inventoryFinished goods inventory
	(Click to select)Cost of goods soldFactory payrollGoods in process inventoryRaw materials inventoryFactory overheadCashAccumulated depreciationFinished goods inventory
c.	(Click to select)SalesFactory payrollRaw materials inventoryAccounts payableCashGoods in process inventoryFactory overheadFinished goods inventory
	(Click to select)Goods in process inventoryFinished goods inventorySalesCashAccounts payableFactory payrollRaw materials inventoryFactory overhead
d.	(Click to select)CashGoods in process inventorySalesFinished goods inventoryFactory overheadRaw materials inventoryFactory payrollAccounts payable
	(Click to select)Finished goods inventoryGoods in process inventoryFactory overheadRaw materials inventoryCashSalesFactory payrollAccounts payable
e.	(Click to select)Goods in process inventorySalesCashFactory payrollRaw materials inventoryFactory overheadFinished goods inventoryAccounts payable
	(Click to select)Factory overheadRaw materials inventoryFinished goods inventoryCashGoods in process inventoryFactory payrollSalesAccounts payable

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order cost accounting.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order cost accounting.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

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20.

value:
10.00 points

Required information

2.1	Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. (Input the amount as positive value. Omit the "$" sign in your response.)

  

(Click to select)Overapplied overheadUnderapplied overhead

$

  

2.2	Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material. (Omit the "$" sign in your response.)

   

Date	General Journal	Debit	Credit
Dec. 31	(Click to select)CashSalesFinished goods inventoryFactory overheadFactory payrollCost of goods soldGoods in process inventoryOverapplied overhead
	(Click to select)CashSalesCost of goods soldOverapplied overheadFactory overheadGoods in process inventoryFinished goods inventoryFactory payroll

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order cost accounting.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order cost accounting.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

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21.

value:
10.00 points

Required information

3.	Prepare a revised trial balance. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities (in order of their liquidity), Equity, Revenues, and Expenses. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

   

THAI BAY COMPANY Trial Balance December 31, 2011
	Debit	Credit
(Click to select)Finished goods inventoryRaw materials inventoryAccounts receivableGoods in process inventoryCashPrepaid rent	$
(Click to select)Prepaid rentCashRaw materials inventoryGoods in process inventoryFinished goods inventoryAccounts receivable
(Click to select)CashFinished goods inventoryPrepaid rentRaw materials inventoryGoods in process inventoryAccounts receivable
(Click to select)CashRaw materials inventoryGoods in process inventoryFinished goods inventoryPrepaid rentAccounts receivable
(Click to select)CashPrepaid rentAccounts receivableGoods in process inventoryRaw materials inventoryFinished goods inventory
(Click to select)Accounts receivablePrepaid rentFinished goods inventoryCashRaw materials inventoryGoods in process inventory
(Click to select)Cost of goods soldNotes payableCommon stockSalesAccounts payableRetained earnings		$
(Click to select)Accounts payableCost of goods soldSalesNotes payableRetained earningsCommon stock
(Click to select)SalesNotes payableCost of goods soldOperating expensesAccounts payableCommon stock
(Click to select)Operating expensesNotes payableRetained earningsCost of goods soldAccounts payableSales
(Click to select)Raw materials inventoryAccounts receivableGoods in process inventoryCost of goods soldSalesCash
(Click to select)Accounts payableCost of goods soldFactory overheadOperating expensesCashFactory payroll
(Click to select)Factory overheadAccounts payableCashOperating expensesCost of goods soldFactory payroll
(Click to select)CashFactory overheadAccounts payableCost of goods soldOperating expensesFactory payroll
(Click to select)Accounts payableCost of goods soldCashFactory overheadOperating expensesFactory payroll
Totals	$	$

References

WorksheetLearning Objective: 19-P1 Describe and record the flow of materials costs in job order cost accounting.Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.

Difficulty: 3 HardLearning Objective: 19-P2 Describe and record the flow of labor costs in job order cost accounting.Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.

Ask your instructor a questionCheck my work

22.

value:
10.00 points

Required information

4.1	Prepare an income statement for year 2011. (Amounts to be deducted should be indicated by a minus sign. Omit the "$" sign in your response.)

   

THAI BAY COMPANY Income Statement For Year Ended December 31, 2011
(Click to select)SalesCost of goods soldAccounts receivableOperating expensesPrepaid rent	$
(Click to select)Accounts payablePrepaid rentOperating expensesCost of goods soldSales
(Click to select)Gross profitGross loss
(Click to select)Accounts payablePrepaid rentCost of goods soldOperating expensesAccounts receivable
(Click to select)Net lossNet profit	$

  

4.2	Prepare a statement of financial position as at December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

  

THAI BAY COMPANY
Statement of Financial Position
December 31, 2011
Assets
(Click to select)Unearned revenueCashAccounts payableNotes payableCommon stock		$
(Click to select)Unearned revenueAccounts receivableNotes payablePrepaid rentAccounts payable
Inventories
(Click to select)Finished goods inventoryGoods in process inventoryPrepaid rentCommon stockRaw materials inventory	$
(Click to select)Goods in process inventoryRaw materials inventoryPrepaid rentCommon stockFinished goods inventory
(Click to select)Common stockGoods in process inventoryRaw materials inventoryPrepaid rentFinished goods inventory
(Click to select)Common stockPrepaid rentRetained earningsNotes payableAccounts payable
Total Assets		$
Liabilities and Equity
(Click to select)Accounts receivableCommon stockNotes payableRetained earningsAccounts payable		$
(Click to select)Notes payableCommon stockAccounts receivableRetained earningsAccounts payable
Total Liabilities
(Click to select)Accounts receivableRaw materials inventoryCommon stockPrepaid rentCash
(Click to select)Raw materials inventoryAccounts receivableRetained earningsCashPrepaid rent
Total Stockholders' Equity
Total Liabilities and Equity		$

Answer 1

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Date	Account	Debit	Credit
a	Goods in Process Inventory	$         12,200
	Raw Material		$         12,200
b	Goods in Process Inventory	$         13,000
	Factory Payroll		$         13,000
c	Goods in Process Inventory	$         26,000
	Factory Overhead		$         26,000
	(200% of Direct Labor 13000)
d	Factory Overhead	$            2,100
	Raw Material		$            2,100
e	Factory Overhead	$            3,000
	Factory Payroll		$            3,000
2.1 and 2.2 Under Applied Overhead:
	Cost of Goods Sold	$            6,100
	Factory Overhead		$            6,100
	(27000+5100-26000)
3. Revised Trial Balance
		Given		Adjustments		Revised
		Debit	Credit	Debit	Credit	Debit	Credit
	Cash	$         48,000				$   48,000
	Accounts receivable	$         42,000				$   42,000
	Raw materials inventory	$         26,000			$ 14,300	$   11,700
	Goods in process inventory	$                   -		$       51,200		$   51,200
	Finished goods inventory	$            9,000				$      9,000
	Prepaid rent	$            3,000				$      3,000
	Accounts payable		$         10,500				$   10,500
	Notes payable		$         13,500				$   13,500
	Share capital—ordinary		$         30,000				$   30,000
	Retained earnings		$         87,000				$   87,000
	Sales		$       180,000				$ 180,000
	Cost of goods sold	$       105,000		$         6,100		$ 111,100
	Factory payroll	$         16,000			$ 16,000	$             -
	Factory overhead	$         27,000			$ 27,000	$             -
	Operating expenses	$         45,000				$   45,000
	Totals	$       321,000	$       321,000	$       57,300	$ 57,300	$ 321,000	$ 321,000