In: Accounting
predetermined overhead rate = | 330000/200000 | |||||||
165% | ||||||||
Accounting titles & Explanations | debit | Credit | ||||||
a) | Raw materials inventory | 275,000 | ||||||
cash | 275,000 | |||||||
b) | work in process inventory | 220,000 | ||||||
Factory overhead | 60,000 | |||||||
Raw materials inventory | 280,000 | |||||||
c) | Work in process inventory | 180,000 | ||||||
Factory overhead | 72,000 | |||||||
Sales commission expense | 63,000 | |||||||
Salaries expense | 90,000 | |||||||
cash | 405,000 | |||||||
d) | Factory overhead | 13,000 | ||||||
Rent expense | 5,000 | |||||||
cash | 18,000 | |||||||
e) | Factory overhead | 57,000 | ||||||
cash | 57,000 | |||||||
f) | Advertising expense | 140,000 | ||||||
cash | 140,000 | |||||||
g) | Factory overhead | 88,000 | ||||||
Depreciation expense | 12,000 | |||||||
Accumulated depreciation | 100,000 | |||||||
h) | work in process inventory | 297000 | ||||||
Factory overhead | (180,000*165%) | 297000 | ||||||
i) | finished goods inventory | 675,000 | ||||||
work in process inventory | 675,000 | |||||||
j) | Cash | 1,250,000 | ||||||
Sales revenue | 1,250,000 | |||||||
cost of goods sold | 700,000 | |||||||
finished goods inventory | 700,000 | |||||||
T-Accounts | ||||||||
Raw materials | Work in process | |||||||
Bal | 25,000 | Bal | 10,000 | |||||
a) | 275,000 | 280,000 | b) | b) | 220,000 | 675,000 | i) | |
c) | 180,000 | |||||||
Bal | 20,000 | h) | 297000 | |||||
Bal | 32,000 | |||||||
Manufacturing overhead | ||||||||
Finished goods | beg.bal | 0 | ||||||
Bal | 40,000 | b) | 60,000 | 297000 | h) | |||
i) | 675,000 | 700,000 | c) | 72,000 | ||||
d) | 13,000 | |||||||
Bal | 15,000 | e) | 57,000 | |||||
g) | 88,000 | |||||||
7,000 | Bal | |||||||
cost of goods sold | ||||||||
Beg.bal | 0 | |||||||
j) | 700,000 | |||||||
3a) | Manufacturing overhead is over applied | |||||||
3B) | Journal entry | |||||||
Account titles & Explanations | Debit | Credit | ||||||
Factory overhead | 7,000 | |||||||
Cost of goods sold | 7,000 | |||||||
4) | Income Statement | |||||||
Sales | 1,250,000 | |||||||
less : cost of goods sold | (700,000-7000) | 693,000 | ||||||
Gross margin | 557,000 | |||||||
less:Selling & administrative expense | ||||||||
Sales comission | 63,000 | |||||||
Administrative salaries | 90,000 | |||||||
Rent exepense | 5,000 | |||||||
Advertising expense | 140,000 | |||||||
Depreciation expense | 12,000 | 310,000 | ||||||
Net operating income | 247,000 | |||||||