Finished goods rmb40000 during the year the following

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Finished Goods Rmb40,000 During the year, the following transactions were completed: a. Raw materials purchased for cash, Rmb275,000. b. Raw materials requisitioned for use in production, Rmb280,000 (materials costing Rmb220,000 were charged directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor Rmb180,000 Indirect labor Rmb72,000 Sales commissions Rmb63,000 Administrative salaries Rmb90,000 d.Rent for the year was Rmb18,000 (Rmb13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities). e.Utility costs incurred in the factory, Rmb57,000. f. Advertising costs incurred, Rmb140,000. g.Depreciation recorded on equipment, Rmb100,000. (Rmb88,000 of this amount was on equipment used in factory operations; the remaining Rmb12,000 was on equipment used in selling and administrative activities.) h.Manufacturing overhead cost was applied to jobs, Rmb ? .
i. Goods that had cost Rmb675,000 to manufacture according to their job cost sheets were completed. j. Sales for the year totaled Rmb1,250,000. The total cost to manufacture these goods according to their job cost sheets was Rmb700,000. Requirement 1: Prepare journal entries to record the transactions for the year. (Omit the "Rmb" sign in your response.)
Requirement 2: Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don't forget to enter the beginning balances in your inventory accounts). Compute an ending balance in each account. (Record the transactions in the given order. Omit the "Rmb" sign in your response.)
Work In Process Beg. Bal 10,000 n/r 675,000 n/r 220,000 n/r 180,000 (h) n/r End. Bal n/r Finished Goods Beg. Bal 40,000 (j) 700,000 (i) 675,000 End. Bal n/r Manufacturing Overhead (b) 60,000 (h) n/r (c) 72,000 (d) 13,000 (e) 57,000 (g) 88,000 End. Bal n/r Cost of Goods Sold (j) 700,000 Requirement 3: (a) Is Manufacturing Overhead underapplied or overapplied for the year? n/r (b) Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (Omit the "Rmb" sign in your response.) General Journal Debit Credit Cost of goods sold n/r Manufacturing overhead n/r Requirement 4: Prepare an income statement for the year. (Input all amounts as positive values. Omit the "Rmb" sign in your response.) Gold Nest Company Income Statement Sales Rmb 1,250,000 Cost of goods sold n/r n/r n/r Selling and administrative expenses: Sales commissions Rmb 63,000 Administrative salaries 95,000 Advertising expenses 14,000 n/r n/r n/r n/r Rmb n/r

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