G income statement mana x : H Netflix ttps:/ html Saved Help Save & Exit Submit
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G income statement mana x : H Netflix ttps:/ html Saved Help Save & Exit Submit Check my work Gold Nest Company of Guandong, China, is a family owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $84,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows Raw materials Work in process Finished goods s 16,480 $ 4,900 $ 8,180 During the year, the following transactions were completed Raw materials purchased for cash, $ 170,000. b. Raw materials used in production. $145,000 (materials costing $123.000 were charged directly to jobs, the remaining materials were indirect .Cash paid to employees as follows: Indirect labor Sales comissions Ad inistrative salaries 5 176,00e 5 287,9o0 5 23,0ee 542,00e d Cash paid for rent during the year was $18,40($13.00 of this amount related to factory operations, and the remainder related to seling and administrative activities) cash reid for inalitv rots in the tartnrv S15000 ype here to search 522 PM /9/20182Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Raw Material 170,000 Cash 170,000 (To record the purchase of raw material) b. Work in Process 123,000 Factory Overhead 22,000 Raw Materials 145,000 (to record the material issued for production) c. Manufacturing Overhead 287,900 Sales Comm. Expenses 42,000 Salaries Expenses 47,000 Work in Process 176,000 Accounts Payable 552,900 (To record the expenses) d. Manufacturing Overhead 13,700 Rent Expenses 4,700 Rent Payable 18,400 (To record the rent expenses) e. Manufacturing Overhead 15,000 Cash 15,000 (to record the utilities expense) f. Advertising Expenses 10,000 Cash 10,000 (To record the advertising expense) g. Manufacturing Overhead 16,000 Depreciation Exp. 5,000 Accumulated Depreciation - Factory Equip. 21,000 (To record the depreciation expense) h Work in Process 369,600 Manufacturing Overhead 369,600 (To record the manufacturing overhead applied) Predetermined Overhead Rate = $84,000 (Overhead) / $40,000 (Direct Lab.) Predetermined Overhead Rate = $2.10 per Direct Labor $ Overhead Applied = $2.10 X $176,000 Overhead Applied = $369,600 i. Finished Goods 227,000 Work in Process 227,000 (To record the finished goods) j-1. Cash 515,000 Sales 515,000 (To record the sales) j-2. Cost of Goods Sold 218,000 Finished Goods 218,000 (To record the cost of goods sold) Answer 2. Raw Material Work in Process Beg. Bal. 10,400 145,000 b. Beg. Bal. 4,900 227,000 i. a. 170,000 b. 123,000 c. 176,000 h 369,600 End. Bal. 35,400 End. Bal. 446,500 Finished Goods Manufacturing Overhead Beg. Bal. 8,100 218,000 j-2. Beg. Bal. - 369,600 h i. 227,000 b. 22,000 c. 287,900 d. 13,700 e. 15,000 g. 16,000 Overapplied Overhead 15,000 End. Bal. 17,100 End. Bal. - Cost of Goods Sold Beg. Bal. - j-2. 218,000 0 - End. Bal. 218,000 Answer 3 A. Overhead Applied 369,600 Actual Overhead 354,600 Over-applied Ovehead 15,000 Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Manufacturing Overhead 15,000 Cost of Goods Sold 15,000 Answer 4 Income Statement Sales 515,000 Cost of Goods Sold 218,000 Less: Over-applied Overhead (15,000) Adjusted Cost of Goods Sold 203,000 Gross Margin 312,000 Sales Comm 42,000 Salaries Exp. 47,000 Rent Expenses 4,700 Advertising Expense 10,000 Depreciation Expense 5,000 108,700 Net Income 203,300
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