Question
In: Accounting
The following information is taken from the accounts of Latta Company. The entries in the T-accounts...
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
| Manufacturing Overhead | |||
| (a) | 502,272 | (b) | 418,560 |
| Bal. | 83,712 | ||
| Work in Process | |||
| Bal. | 4,440 | (c) | 782,000 |
| 323,000 | |||
| 94,000 | |||
| (b) | 418,560 | ||
| Bal. | 58,000 | ||
| Finished Goods | |||
| Bal. | 32,000 | (d) | 676,000 |
| (c) | 782,000 | ||
| Bal. | 138,000 | ||
| Cost of Goods Sold | |||
| (d) | 676,000 | ||
The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
| Work in Process, ending | $ | 27,840 |
| Finished Goods, ending | 66,240 | |
| Cost of Goods Sold | 324,480 | |
| Overhead applied | $ | 418,560 |
For example, of the $58,000 ending balance in work in process, $27,840 was overhead that had been applied during the year.
Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Identify reasons for entries (a) through (d).
|
Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the adjustment of manufacturing overhead account to COGS.
Note: Enter debits before credits.
|
Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)
Journal entry worksheet
Record the allocation of any balance in the manufacturing overhead account to other accounts.
Note: Enter debits before credits.
|
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The following information is taken from the accounts of Latta Company. The entries in the T-accounts...
The following information is taken from the accounts of Latta
Company. The entries in the T-accounts are summaries of the
transactions that affected those accounts during the year.
Manufacturing
Overhead
(a)
490,752
(b)
408,960
Bal.
81,792
Work in Process
Bal.
9,040
(c)
762,000
305,500
91,500
(b)
408,960
Bal.
53,000
Finished Goods
Bal.
37,000
(d)
666,000
(c)
762,000
Bal.
133,000
Cost of Goods Sold
(d)
666,000
The overhead that had been applied to production during the year
is distributed among...
The following information is taken from the accounts of Foster Corp. The entries in the T-accounts...
The following information is taken from the accounts of Foster
Corp. The entries in the T-accounts are summaries of the
transactions that affected those accounts during the year.
Manufacturing Overhead
(a)
460,000
(b)
510,000
Bal.
50,000
Work in Progress
Bal.
125,000
(c)
860,000
230,000
135,000
(b)
510,000
Bal.
140,000
Finished Goods
Bal.
190,000
(d)
910,000
(c)
860,000
Bal.
140,000
Cost of Goods Sold
(d)
910,000
The overhead applied to production...
The following information is taken from the records of XYZ Company: Cash $10,000 Accounts receivables 30,000...
The following information is taken from the records of XYZ
Company: Cash $10,000 Accounts receivables 30,000 Inventory 80,000
Prepaid insurance 6,000 Fixed assets 200,000 Accounts payable
30,000 Notes payable (due in 10 months) 25,000 Wages payable 5,000
Long term liabilities 70,000 Owners’ equity 196,000 The company had
sales of $150,000, cost of good sold of 60,000 and a net income of
25,000
MCQ
8-The company’s assets turnover is: A) 1 times B) 0.75 times C)
0.5 times
9. The company’s...
I have already created the journal entries for the following information but I need the t-accounts,...
I have already created the journal entries for the following
information but I need the t-accounts, income statement, statement
of retained earning and balance sheet:
The following transactions occurred during 2018 (the company
uses a perpetual inventory system with FIFO):
1) Jan 4 Stockholders invested an
additional $10,000 cash in the business in exchange for common
stock
2) Jan 4 Purchased 20 rabbits at
$50 each on account from Jelly Bean Farms.
3) Jan 4 Established a $200 petty
change...
The following information was taken from the accounts of Green Market, a delicatessen, at December 31,...
The following information was taken from the accounts of Green
Market, a delicatessen, at December 31, 2018. The accounts are
listed in alphabetical order, and each has a normal balance.
-245
Accounts payable
$
611
Accounts receivable
411
Advertising expense
200
Cash
421
Common stock
211
Cost of goods sold
700
Interest expense
59
Merchandise inventory
340
Prepaid rent
51
Retained earnings, 1/1/2018
646
Sales revenue
1,110
Salaries expense
240
Rent expense
100
Gain on sale of land
56
Required...
a. Prepare the closing entries for Donovan Co. taken from the following ledger information after adjustment...
a. Prepare the closing entries for Donovan Co. taken from the
following ledger information after adjustment on December 31, 2011
the end of the fiscal year. Accounts Payable $ 47,200 Accounts
Receivable 64,300 Accumulated Depreciation 22,750 Administrative
Expenses 75,500 Capital Stock 141,750 Cash 39,700 Cost of
Merchandise Sold 545,000 Dividends 42,000 Interest Expense 9,000
Merchandise Inventory 93,250 Rent Revenue 7,500 Office Equipment
49,750 Sales 820,500 Selling Expenses 101,500 Depreciation Expenses
6,500 b. What inventory system does Donovan Company use? Periodic...
Missing data can be derived, and journal entries constructed, from information in the accounts. The following...
Missing data can be derived, and journal entries
constructed, from information in the accounts.
The following schedule shows the amounts related to supplies
that a city debited and credited to the indicated accounts during a
year (not necessarily the year‐end balances), excluding closing
entries. The city records its budget, encumbers all its
expenditures, and initially vouchers all payments. All revenue was
collected in cash. Some information is missing. By reconstructing
the entries that the city made during the year, you...
Job Cost Journal Entries and T Accounts Following are certain operating data for Durango Manufacturing Company...
Job Cost Journal Entries and T Accounts
Following are certain operating data for Durango Manufacturing
Company for January 2016
Materials Inventory
Work in Process Inventory
Finished Goods Inventory
Beginning inventory
$114,000
$48,000
$150,000
Ending inventory
66,000
81,000
96,000
Total sales were $3,600,000, on which the company earned a 40%
gross profit. Durango uses a predetermined manufacturing overhead
rate of 120% of direct labor costs. Manufacturing overhead applied
was $720,000. Exclusive of indirect material used, total
manufacturing overhead incurred was $486,000...
Job Cost Journal Entries and T Accounts Following are certain operating data for Redwood Manufacturing Company...
Job Cost Journal Entries and T Accounts
Following are certain operating data for Redwood Manufacturing
Company for January 2016
Materials
Inventory
Work in
Process Inventory
Finished Goods
Inventory
Beginning inventory
$88,000
$110,000
$176,000
Ending inventory
154,000
132,000
123,200
Total sales were $4,400,000, on which the company earned a 40%
gross profit. Redwood uses a predetermined manufacturing overhead
rate of 110% of direct labor costs. Manufacturing overhead applied
was $871,200. Exclusive of indirect material used, total
manufacturing overhead incurred was $660,000...
The following information was taken from the financial statements of Lefton corporation: Accounts receivable 2018: $25,000...
The following information was taken from the financial
statements of Lefton corporation: Accounts receivable 2018: $25,000
2017: $18,500 Inventory 2018: $33,000 2017; $46000 Fixed assets
(net) 2018: $120,000 2017: $100,000 Accounts payable 2018: $65000
2017: $70,000 Net sales: 2018: $375,000 2017: $425,000 Cost of
goods sold 2018: $150,000 2017: $200,000 Net income 2018: $56,000
2017:$40000 # shares issued 2018: 80,000 2017: 80,000 # shares in
treasury stock 2018:10,000 2017:20,000 Calculate the following
ratios for 2018: Fixed asset turnover Inventory turnover...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
- Young and Company claims that its pressurized diving bell will, on average, maintain its integrity to...
ADVERTISEMENT