Question

Sheffield Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Sheffield uses a job order costing system. On January 1, the T-accounts for some of Sheffield’s primary balance sheet accounts were as follows:

Raw Materials Inventory

Work in Process Inventory

Beg.

12,100

Beg.

32,000

Finished Goods Inventory

Cash

Beg.

28,300

Beg.

44,500

Accounts Receivable

Accounts Payable

Beg.

55,400

Beg.

40,000

During the year, the following events occurred:

1.	Sheffield purchased raw materials costing $83,400 on account.
2.	Sheffield used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Sheffield maintains a single Raw Materials Inventory account.)
3.	Sheffield used 38,600 hours of direct labor. The company’s average direct labor rate was $7.50 per hour (credit Wages Payable).
4.	The company’s only indirect labor cost was the salary of a security guard hired to watch the company’s shop after hours. The guard’s annual salary was $22,100 (credit Wages Payable).
5.	Other manufacturing overhead costs the company incurred on account totaled $70,400.
6.	Sheffield applied $134,000 in manufacturing overhead.
7.	The company completed production of goods costing $329,000.
8.	The company’s Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead.
9.	Sales revenue was $434,000 (all sales were made on account).
10.	Sheffield collected $457,000 from customers.
11.	The company paid accounts payable of $101,000.
12.	At year-end, all wages earned during the year had been paid.

Record the transactions above in the appropriate T-accounts and calculate ending balances

Answer 1