Problem%203-20%20AJE

Problem%203-20%20AJE - 90,000 Accounts Payable 100,000 Cash...

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Problem 3-20  DR CR a Raw Materials 45,000      Accounts Payable 45,000 b Manufacturing Overhead 20% 8,000 Work in Process 80% 32,000        Raw Materials 40,000 c Manufacturing Overhead 14,600     Accounts Payable 14,600 d        Acc Dep’n 28,000     Manufacturing Overhead 21,000     Depreciation Expense 7,000
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e    Manufacturing Overhead 18,000    Work in Process 40,000    Administrative Salaries Exp. 25,000    Sales Commissions Expense 10,400 93,400 f Manufacturing Overhead 80% 2,400 Insurance Expense 20% 600    Prepaid Insurance 3,000 g Miscellaneous Expense 18,000    Accounts Payable 18,000 h Work in Process 60,000    Manufacturing Overhead 60,000 (e) DL is 40,000 x 150% =  60,000
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i Finished Goods 130,000     Work in Process 130,00 0 j Accounts Receivable 200,000     Sales 200,00 0 Cost of Goods Sold 120,000    Finished Goods 120,00 0 K Cash 197,000    Accounts Receivable 197,00 0 l
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Unformatted text preview: 90,000 Accounts Payable 100,000 Cash 190,00 m Cost of Goods Sold 4,000 Manufacturing Overhead 4,000 4. Durham Company Income Statement For the Year Ended December 31 Sales. .............................................................. $200,000 Cost of goods sold ($120,000 + $4,000). ........ 124,000 Gross margin. .................................................. 76,000 Selling and administrative expenses: Depreciation expense. .................................. $ 7,000 Sales commissions expense. ....................... 10,400 Administrative salaries expense. .................. 25,000 Insurance expense. ...................................... 600 Miscellaneous expense. ............................... 18,000 61,000 Operating income. ........................................... $ 15,000...
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Problem%203-20%20AJE - 90,000 Accounts Payable 100,000 Cash...

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