Farina Bay’s computer system generated the following trial balance on December 31, 2013. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.
| Debit | Credit | |||||
| Cash | $ | 45,000 | ||||
| Accounts receivable | 39,000 | |||||
| Raw materials inventory | 24,500 | |||||
| Goods in process inventory | 0 | |||||
| Finished goods inventory | 9,000 | |||||
| Prepaid rent | 3,000 | |||||
| Accounts payable | $ | 11,100 | ||||
| Notes payable | 14,100 | |||||
| Common stock | 30,000 | |||||
| Retained earnings | 93,000 | |||||
| Sales | 162,300 | |||||
| Cost of goods sold | 106,000 | |||||
| Factory payroll | 18,000 | |||||
| Factory overhead | 28,000 | |||||
| Operating expenses | 38,000 | |||||
|
|
|
|
|
|||
| Totals | $ | 310,500 | $ | 310,500 | ||
|
|
|
|
|
|||
|
|
||||||
|
After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. |
| Materials requisition 21-3010: | $ | 4,300 | direct materials to Job 402 | |
| Materials requisition 21-3011: | $ | 7,600 | direct materials to Job 404 | |
| Materials requisition 21-3012: | $ | 1,700 | indirect materials | |
| Labor time ticket 6052: | $ | 3,000 | direct labor to Job 402 | |
| Labor time ticket 6053: | $ | 12,000 | direct labor to Job 404 | |
| Labor time ticket 6054: | $ | 3,000 | indirect labor | |
|
|
||||
|
Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost. |
| a. | Direct materials costs to Goods in Process Inventory. |
| b. | Direct labor costs to Goods in Process Inventory. |
| c. | Overhead costs to Goods in Process Inventory. |
| d. | Indirect materials costs to the Factory Overhead account. |
| e. | Indirect labor costs to the Factory Overhead account. |
| Required: | |
| 1. |
Prepare journal entries to assign the above costs.
|
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more