Question

Coronodo Industries makes specialized clothing for businesses in the food and beverage industry. During September, Ricardo completed the following transactions.

Sept     1        Direct materials costing $60,000 were purchased on account.

sept3        Direct materials costing $32,850 were requested into production (all were used on Job A).

sep4 Indirect materials were purchased for cash, $32,830.

sep8 The company issued checks for the following factory overhead costs: Utilities, $3,210; manufacturing insurance, $4,025; and repairs, $4,640

sep10        Direct materials costing $34,510 (all used on Job A) and indirect materials costing $6,480 were requested into production.

sep15        Recorded the following gross wages and salaries for employees: direct labor, $69,200 (all for Job A); indirect labor, $21,610; manufacturing supervision, $36,900; and sales commissions, $22,980.

sep15 Overhead was applied to production.

sep 22 The company issued checks for the following factory overhead costs: utilities, $4,270; maintenance, $3,380; and rent, $3,250.
sep 23 Direct materials costing $41,940 and indirect materials costing $8,260 were purchased.

sep27        Production requisitioned $28,870 of direct materials (Job A, $2,660; Job B, $8,400; Job C, $17,810) and $7,640 of indirect materials.

sep30        Recorded the following gross wages and salaries for employees: direct labor, $64,220 (Job A, $44,000; Job B, $9,000; Job C, $11,220); indirect labor, $30,290; manufacturing supervision, $28,520; and sales commissions, $36,200.

sep 30 Manufacturing overhead was applied to production.

sep30 Jobs A (58,840 units) and B (3,525 units) were completed and transferred to finished goods inventory. (Compute unit cost for each job; round to nearest cent).

sep30 Job A was shipped to the customer and the customer was billed for the sale. It is Ricardo's practice to charge 40% over cost of production to allow adequate gross profit to cover period costs and profit. The company uses a perpetual inventory system.

sep 30 Adjusting entries for the following were recorded: $4,680 for depreciation, factory equipment; $5,230 for property taxes for factory, payable at month end.

Answer 1

Date	Accouunts Title	Dr	Cr
1-Sep	Raw Material Inventory	$60,000
	Accounts Payable		$60,000
3-Sep	Work in process Inventory	$32,850
	Raw Material Inventory		$32,850
4-Sep	Raw Material Inventory	$32,830
	Accounts Payable		$32,830
8-Sep	Manufacturing Overhead	11875
	Cash (3210+4025+4640)		11875
10-Sep	Work in process Inventory	34510
	Manufacturing Overhead	6480
	Raw Material Inventory		40990
15-Sep	Work in process Inventory	69200
	Manufacturing Overhead	58510
	Sales commission	36900
	Wages Payable		164610
22-Sep	Manufacturing Overhead	10900
	Cash (4270+3380+3250)		10900
23-Sep	Raw Material Inventory	50200
	Accounts Payable (41940+8260)		$50,200
27-Sep	Work in process Inventory	28870
	Manufacturing Overhead	7640
	Raw Material Inventory		36510
30-Sep	Work in process Inventory	64220
	Manufacturing Overhead	58810
	Sales commission	36200
	Wages Payable		159230
30-Sep	Work in process Inventory
	Manufacturing Overhead
	(applied details not given)
30-Sep	Finsihed Goods Inventory
	Work in process Inventory
(cant calculate as manufacturing overhed applied cant be calculated)
30-Sep	Accounts Receivable
	Sales
	Cost of goods sold
	Finished goods Inventory
30-Sep	Manufacturing Overhead	$9,910
	Accumulated Depreciation-Factory equipment		$4,680
	Property taxes payable		5230