Chpt 3 Pearson Bicycle solution

Chpt 3 Pearson Bicycle solution - PEARSON BICYCLE SOLUTION...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
PEARSON BICYCLE SOLUTION 1. Cash 5000 Common stock 5000 2. Raw Materials (Inv) 1200 Cash 1200 3. WIP (Inv) 900 Raw Materials (Inv) 900 4. a. Record all manufacturing wages Manufacturing wages 1100 Cash 1100 b. Transfer direct labor to WIP WIP (Inv) ($8.00 * 120 DLH) 960 Manufacturing wages 960 c. Transfer indirect labor to Mnfg OH Manufacturing OH 140 Manufacturing wages 140 5. Manufacturing OH 1560 Cash 1560 6. Raw materials (Inv) 160 Cash 160 7. Manufacturing OH 610 Cash 610 8. Predetermined OH rate = $12,750 / 1500 DLH = $8.50 per DLH Applied OH for first bike = 120 DLH * $8.50 per DLH = $1,020 WIP (Inv) 1020 Manufacturing OH 1020 9. Total amount in WIP to transfer out = 900 (#3) + 960 (#4b) + 1020 (#8) = $2880 CoGM Finished goods (Inv) 2880 WIP (Inv) 2880
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10. a. Entry to recognize revenue Cash 4500 Revenue 4500 b. Entry to relieve inventory CoGS 2880 Finished goods (Inv) 2880 11. 490 Cash 490 12. Cash 40000 Common Stock 40000 13. Raw materials (Inv) 12500 Cash 12500 14. WIP (Inv) 11600 Raw materials (Inv) 11600 15. a. Record all manufacturing wages Manufacturing wages 14000 Cash 14000 b. Transfer direct labor to WIP
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/08/2011 for the course ACCT 101 taught by Professor Kang during the Spring '08 term at S.F. State.

Page1 / 5

Chpt 3 Pearson Bicycle solution - PEARSON BICYCLE SOLUTION...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online