Chapt 4 – Answers for Video Exercises and Problems 4- 30, 35, 24, 22, 36, 43, 40
4-30
Journal entries, T-accounts, and source documents
SOLUTION
Journal entries, T-accounts, and source documents
.
1.
(1)
Direct Materials Control
121,000
Accounts Payable Control
121,000
Source Document: Purchase Invoice, Receiving Report
Subsidiary Ledger: Direct Materials Record, Accounts Payable
(2) Work in Process Control
a
112,400
Direct Materials Control
112,400
Source Document: Material Requisition Records, Job Cost Record
Subsidiary Ledger: Direct Materials Record, Work-in-Process Inventory Records by Jobs
(3) Work in Process Control
87,000
Manufacturing Overhead Control
54,400
Wages Payable Control
141,400
Source Document: Labor Time Sheets, Job Cost Records
Subsidiary Ledger: Manufacturing Overhead Records, Employee Labor Records, Work-in-Process
Inventory Records by Jobs
(4) Manufacturing Overhead Control
207,100
Salaries Payable Control
46,000
Accounts Payable Control
9,100
Accumulated Depreciation Control
53,000
Rent Payable Control
99,000
Source Document: Depreciation Schedule, Rent Schedule, Maintenance wages due, Invoices for
miscellaneous factory overhead items
Subsidiary Ledger: Manufacturing Overhead Records
(5) Work in Process Control
269,700
Manufacturing Overhead Allocated
269,700
($87,000
$3.10)
Source Document:
Labor Time Sheets, Job Cost Record
Subsidiary Ledger:
Work-in-Process Inventory Records by Jobs
(6) Finished Goods Control
b
449,600
Work in Process Control
449,600
Source Document: Job Cost Record, Completed Job Cost Record
Subsidiary Ledger: Work-in-Process Inventory Records by Jobs, Finished Goods Inventory Records
by Jobs
1
(7) Cost of Goods Sold
c
478,600
Finished Goods Control
478,600
Source Document: Sales Invoice, Completed Job Cost Record
Subsidiary Ledger: Finished Goods Inventory Records by Jobs
(8)
Manufacturing Overhead Allocated
269,700
Manufacturing Overhead Control
($54,400 + $207,100)
261,500
Cost of Goods Sold
8,200
Source Document: Prior Journal Entries
(9)
Administrative Expenses
7,700
Marketing Expenses
136,000
Salaries Payable Control
39,000
Accounts Payable Control
97,000
Accumulated Depreciation, Office Equipment
7,700
Source Document: Depreciation Schedule, Marketing Payroll Request, Invoice for Advertising,
Sales Commission Schedule.
Subsidiary Ledger: Employee Salary Records, Administration Cost Records, Marketing Cost
Records.
a
Materials used =
Beginning direct
materials inventory
+ Purchases –
Ending direct
materials inventory
= $9,400 + $121,000
$18,000 = $112,400
b
Cost of
goods manufactured
=
Beginning WIP
inventory
+
Manufacturing
cost
–
Ending WIP
inventory
= $6,500 + ($112,400 + $87,000 + $269,700)
$26,000 = $449,600
c
Cost of goods sold =
Beginning finished
goods inventory
+
Cost of goods
manufactured
–
Ending finished
goods inventory
= $60,000 + $449,600
$31,000 = $478,600
2.
T-accounts
Direct Materials Control
Bal. 1/1/2017
(1)
Accounts Payable Control
(Purchases)
9,400
121,000
(2)
Work-in-Process Control
(Materials used)
112,400
Bal. 12/31/2017
18,000
2
Work-in-Process Control
Bal. 1/1/2017
(2)
Materials Control
(Direct materials used)
(3)
Wages Payable Control
(Direct manuf. labor)
(5)
Manuf. Overhead
Allocated
6,500
112,400
87,000
269,700
(6)
Finished Goods Control
(Cost of goods
manufactured)
449,600
Bal. 12/31/2017
26,000
Finished Goods Control
Bal. 1/1/2017
(6)
WIP Control
(Cost of goods manuf.)
60,000
449,600
(7)
Cost of Goods Sold
478,600
Bal. 12/31/2017
31,000
Cost of Goods Sold
(7)
