Subsidiary ledger finished goods inventory records by

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Subsidiary Ledger: Finished Goods Inventory Records by Jobs viii. Manufacturing Overhead Allocated 200,000 Manufacturing Overhead Control 184,000 Cost of Goods Sold 16,000 4-15
Source Document: Prior Journal Entries ix. Administrative Expenses 7,000 Marketing Expenses 120,000 Salaries Payable Control 30,000 Accounts Payable Control 90,000 Accumulated Depreciation, Office Equipment 7,000 Source Document: Depreciation Schedule, Marketing Payroll Request, Invoice for Advertising, Sales Commission Schedule. Subsidiary Ledger: Employee Salary Records, Administration Cost Records, Marketing Cost Records. 4-16 a Materials used = Beginning direct materials inventory + Purchases Ending direct materials inventory = $9,000 + $124,000 $11,000 = $122,000 b Cost of goods manufactured = Beginning WIP inventory + Manufacturing cost Ending WIP inventory = $6,000 + ($122,000 + $80,000 + $200,000) $21,000 = 387,000 c Cost of Goods Sold = Beginning fin. goods inventory + Cost of goods manuf. Ending fin. goods inventory = $69,000 + $387,0000 $24,000 = $432,000
2. T-accounts Direct Materials Control Bal. 1/1/2008 (1) Purchases 9,000 124,000 (2) Materials used Issues 122,000 Bal. 12/31/2008 11,000 Work-in-Process Control Bal. 1/1/2008 (2) Direct materials used (3) Direct manuf. labor (5) Manuf. overhead allocated 6,000 122,000 80,000 200,000 (6) Cost of goods manufactured 387,000 Bal. 12/31/2008 21,000 Finished Goods Control Bal. 1/1/2008 (6) Cost of goods manuf. 69,000 387,000 (7) Cost of goods sold 432,000 Bal. 12/31/2008 24,000 Cost of Goods Sold (7) Goods sold 432,000 (8) Adjust for overallocation 16,000 Manufacturing Overhead Control (3)Indirect labor (4) Supplies (4) Miscellaneous (4 Depreciation (4) Rent 54,500 20,000 9,500 30,000 70,000 (8) To close 184,000 Bal. 0 Manufacturing Overhead Allocated (8) To close 200,000 (5) Manuf. overhead allocated 200,000 Bal. 0 4-17
4-26 (45 min.) Job costing, journal entries. Some instructors may wish to assign Problem 4-24. It demonstrates the relationships of journal entries, general ledger, subsidiary ledgers, and source documents. 1. An overview of the product-costing system is 2. Amounts in millions. (1) Materials Control Accounts Payable Control 150 150 (2) Work-in-Process Control Materials Control 145 145 (3) Manufacturing Department Overhead Control Materials Control 10 10 (4) Work-in-Process Control Wages Payable Control 90 90 (5) Manufacturing Department Overhead Control Wages Payable Control 30 30 (6) Manufacturing Department Overhead Control Accumulated Depreciation 19 19 (7) Manufacturing Department Overhead Control Various liabilities 9 9 (8) Work-in-Process Control Manufacturing Overhead Allocated 63 63 (9) Finished Goods Control Work-in-Process Control 294 294 (10a) Cost of Goods Sold Finished Goods Control 292 292 (10b) Accounts Receivable Control (or Cash ) Revenues 400 400 4-18 Manufacturing Overhead Machine-Hours Indirect Costs Direct Costs Direct Materials Direct Manuf. Labor INDIRECT COST POOL COST ALLOCATION BASE COST OBJECT PRODUCT DIRECT COSTS
The posting of entries to T-accounts is as follows: Materials Control Work-in-Process Control Bal. 12 (1) 150 (2) 145 (3) 10 Bal. 2 (2) 145 (4) 90 (8) 63 (9) 294 Bal. 6 Finished Goods Control Cost of Goods Sold Bal. 6 (9) 294 (10a) 292 (10a) 292 (11) 5 Manufacturing Department Overhead Control Manufacturing Overhead Allocated (3) 10 (5) 30 (6) 19 (7) 9 (11) 68 (11) 63 (8) 63 Accounts Payable Control Wages Payable Control (1) 150 (4) 90 (5) 30

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