Question

In: Accounting

The following activities took place in the work in process inventory account during April: Beginning Balance...

The following activities took place in the work in process inventory account during April:

Beginning Balance $15,000

Direct Materials Used $120,000

Total manufacturing labor incurred in April was $162,500, 80% of this amount represented direct labor. The predetermined manufacturing overhead rate is 120% of direct labor cost. Actual manufacturing overhead costs for April amounted to $150,000.

Two jobs were completed with total costs of $120,000 and $85,000, respectively. They were sold on account for $265,000 and $155,000, respectively.

a) Compute the balance in work in process inventory on April 30.

b) Record the journal entry for direct materials used in April.

c) Record the journal entry for total manufacuring labor incurred in April.

d) Record the journal entry to allocate manufacturing labor to the appropriate accounts.

e) Record the journal entry for allocated manufacturing overhead for April.

f) Record the entry to move the completed juobs into finished goods inventory.

g) Record the entry to sell the two completed jobs on account.

Solutions

Expert Solution

Rreq a:
Balance in WIP on April 30:
beginning Balance 15000
Add: Current manufacturing cost
Material 120,000
Labour (162500*80%) 130000
OH (130,000*120%) 156000
Total Cost of goods 421000
Less: Cost f Goods completed 205000
Ending balancec in WIP 216000
Journal entry:
S.no. Accounts title and explanation Debit $ Credit $
b. Work in Process Inventory Dr. 120,000
     Raw material inventory 120,000
c. Factory Wages Dr. 162500
      Cash account 162500
d. Work in process Inventory Dr. 130000
Factory Overheads Account Dr. 32500
      Factory Wages 162500
e. Work in Process Inventory Dr. 156000
     Factory Overheads 156000
f. Finished Goods inventory Dr. 205000
    Work in process Inventory 205000
g. Accounts receivable Dr. 420000
      Sales revenue 420000
Cost of goods sold dr. 205000
      Finished Goods inventory 205000

Related Solutions

During April, the following changes in the single inventory product took place:           April   1     Balance           &nb
During April, the following changes in the single inventory product took place:           April   1     Balance                        1,400 units @ $24                       8     Purchased                      900 units @ $36                     12     Purchased                      700 units @ $30                     24     Purchased                      400 units @ $50                     10     Sold                              1,500 units @ $40                     26     Sold                              1,700 units @ $44 Calculate the COGS after each sales transaction and the ending inventory after each transaction under the following methods. (a)   FIFO. (b)   Average Cost. (round numbers...
Q3. During April, the following changes in the single inventory product took place: (1 mark).          ...
Q3. During April, the following changes in the single inventory product took place: (1 mark).           April   1     Balance                        1,400 units @ $24                       8     Purchased                       900 units @ $36                     12     Purchased                       700 units @ $30                     24     Purchased                       400 units @ $50                     10     Sold                              1,500 units @ $40                     26     Sold                              1,700 units @ $44 Calculate the COGS after each sales transaction and the ending inventory after each transaction under the following methods. (a)   FIFO. (b)   Average...
During June, the following changes in inventory item A took place:    June 1   Balance   800...
During June, the following changes in inventory item A took place:    June 1   Balance   800 units @ $20 June 8   Sold       600 units @ $50 June 10   Purchased   800 units @ $21 June  14   Sold       700 units @ $50 June 24   Purchased   600 units @ $22            Instructions What is the cost of goods sold and the ending inventory for item A under the following methods? (Show calculations.) A. Periodic (a)   FIFO (b)   LIFO (c) Average...
During May the following changes in inventory took place: Show all calculations: May 1 Balance 1,100...
During May the following changes in inventory took place: Show all calculations: May 1 Balance 1,100 units @ $25 = 27500   14 Purchases   800 units @ $36 = 28,800   24 Purchases   700 units @ $30 = 21,000 May 8   Sold                      500 units @ $50 19 Sold                      300 units @ $49 29   Sold                      600 units @ $54 A physical count indicates that 1,200 units are on hand on May 31. Part A: Assuming the company uses the perpetual method. A. Compute the Cost...
During June, the following changes in inventory item 27 took place: June    1 Balance 1,470 units...
During June, the following changes in inventory item 27 took place: June    1 Balance 1,470 units @ $37 8 Sold 360 units @ $70 10 Sold 1,110 units @ $63 14 Purchased 890 units @ $56 24 Purchased 680 units @ $44 29 Sold 450 units @ $65 Perpetual inventories are maintained. a. What is the cost of the ending inventory for item 27 under the FIFO method? b. What is the cost of the ending inventory for item 27...
During June, the following changes in inventory item 27 took place: June    1 Balance 1,420 units...
During June, the following changes in inventory item 27 took place: June    1 Balance 1,420 units @ $35 14 Purchased 870 units @ $55 24 Purchased 700 units @ $45 8 Sold 300 units @ $74 10 Sold 1,120 units @ $60 29 Sold 510 units @ $65 Perpetual inventories are maintained. What is the cost of the ending inventory for item 27 under the FIFO method? Cost of the ending Inventory?    $ What is the cost of the...
In April, one of the processing departments at Terada Corporation had beginning work in process inventory...
In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $33,000. During the month, $250,000 of costs were added to production and the cost of units transferred out from the department was $244,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:
Question 3 (16 marks) The following transactions took place during the month of April 2019 in...
Question 3 The following transactions took place during the month of April 2019 in the books of account of Mr Motto, a sole trader: 1st Mr. Motto opened a business bank account and deposited a cheque for N$150 000. 6th He purchased a motor vehicle for N$120 000 on credit from Mayo Vehicle CC. 10th He bought goods on credit from Paul for N$5 000. 11th He sold goods on credit to Matina for N$3 000. 12th Matina paid Mr....
Litres Costs Beginning work in process inventory 0 litres Beginning work in process inventory $0 Started...
Litres Costs Beginning work in process inventory 0 litres Beginning work in process inventory $0 Started production 14,300 litres Costs added during November: Completed and transferred out to Chicken 21,740 Retort in November 13,600 litres Cream 4,000 Ending work in process inventory Green peppers and mushrooms 5,440 (60% of the way through the Direct labour 11,200 mixing process) 700 litres Manufacturing overhead 9,830 Total costs $52,210 1. Fill in the time line for the Mixing Department. 2. Use the time...
Ending inventory of work in process is $200,000 while the beginning inventory of work-in-process is $400,000....
Ending inventory of work in process is $200,000 while the beginning inventory of work-in-process is $400,000. The company had ending inventory of direct materials of $250,000 and beginning inventory of direct materials of $800,000. Direct materials purchased during the period was $700,000. Discount received on direct materials purchased was $150,000 while the cost of direct materials returned was $50,000. There were records of delivery expenses (freight-out) in the amount of $70,000; and as a result of FOB shipping point on...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT