Question

Dessert Delite Company produces frozen microwavable desserts. The following accounts appeared in the ledger as of December 31. Additional information: a. Accounts payable is used only for direct-material purchases. b. Underapplied overhead of $2,600 for the year has not yet been closed into cost of goods sold.

Complete the below T-accounts.

  

Raw-Material Inventory Accounts Payable Bal. 1/1 21,300 Bal. 1/1 2,600 136,500 Bal. 12/31 36,000 Bal. 12/31 1,000 Work-in-Process Inventory Finished-Goods Inventory Bal. 1/1 17,000 Bal. 1/1 12,000 Direct material Direct labor Bal. 12/31 20,000 Manufacturing overhead Bal. 12/31 19,000 Manufacturing Overhead Cost of Goods Sold 710,100 0 710,100 Wages Payable Sales Revenue Bal. 1/1 2,000 147,000 Bal. 12/31 5,000 0 Accounts Receivable Bal. 1/1 11,100 806,000 Bal. 12/31 15,000

Answer 1

Cash					Accounts Payable
Bal 1/1	$     21,300				Bal 1/1		$       2,600
Purchase of Raw material	$ 1,34,900	$ 1,20,200	Transfer to Work - in - process Inventory			$ 1,36,500	$ 1,34,900	Purchase of Raw material
Bal 12/31	$     36,000				Bal 12/31		$       1,000
Work-in-Process Inventory					Finished-Goods Inventory
Bal 1/1	$     17,000				Bal 1/1	$     12,000
Direct material	$ 1,20,200				Work-in-Process Inventory	$ 2,70,800	$ 2,62,800	Cost of Goods Sold
Direct labor	$ 1,50,000	$ 2,70,800	Finished-Goods Inventory
Manufacturing overhead	$       2,600
Bal 12/31	$     19,000				Bal 12/31	$     20,000
Manufacturing Overheads					Cost of Goods Sold
Bal 1/1					Bal 1/1	$ 7,10,100
Underapplied overheads	$       2,600	$       2,600			Finished-Goods Inventory	$ 2,62,800	$ 2,62,800	Sales Revenue
Bal 12/31					Bal 12/31	$ 7,10,100
Wages Payable					Sales Revenue
Bal 1/1		$       2,000			Bal 1/1		$ 8,09,900	Sales
	$ 1,47,000	$ 1,50,000	Wages Payable			$ 2,62,800
Bal 12/31		$       5,000			Bal 12/31		$ 5,47,100
Accounts receivables
Bal 1/1	$     11,100
Sales	$ 8,09,900	$ 8,06,000
Bal 12/31	$     15,000