In: Accounting
Journal Entries, T-Accounts, Cost of Goods Manufactured and Sold
During May, the following transactions were completed and reported by Jerico Company:
The company also reported the following beginning balances in its inventory accounts:
Materials Inventory | $7,500 |
Work-in-Process Inventory | 37,000 |
Finished Goods Inventory | 50,000 |
Required:
1. Prepare journal entries to record the transactions occurring in May. For a compound transaction, if an amount box does not require an entry, leave it blank.
2. Prepare T-accounts for Materials Inventory, Overhead Control, Work-in-Process Inventory, and Finished Goods Inventory. Post the entries to the T-account in the same order in which they were journalized.
3. Prepare a statement of cost of goods manufactured.
4. If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase?