General information: Before starting the project, read through the instructions

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General information: Before starting the project, read through the instructions so you have an idea of what you're doing. For the most part, you will do the steps in order or concurrently. You may assign different steps to individual group members, but make sure everyone is aware of what's happening. Each group will pick one "job" to produce. Use the information given for that job. When preparing/posting journal entries (JE), use the transaction number given (ie. #1) rather than a date. Al the accounts ou'll needare isted inthe General Ledger. Show calculations for the hi-lighted items in the spaces provided on these instruction pages Job information Direct Direct Material Material Direct Labor Unit Units equired 420 Hours per employee Job # 101 Fire Truck 102 Rescue Plane 103 Ambulance 104 |Police Helicopter Product Customer 6 175 Mt. Pleasant Fire Dept 475 8 230n Coast Guard 450 520 5 $ 12 200 260 CM Hospital MI State Police 1. Prepare journal entries for the following transactions: Purchase of raw materials on account (#1)-$15,000 wages payable (#2) (ignore taxes) (Use the followingamountsforyourJob#) . . #101: $15,800 a. b, #102: $20,200 #103: $17,800 #104:$22,600 c, d. Overhead costs (one entry-#3): . a. b. c. Utilities (to be paid next month)- $2,000 Repairs (to be paid next month)- $3,500 Depreciation-$6,000 Prepare Materials Requisition Slip for the required units for your job and give to Inventory Cle (Mrs. DeWitt). 2.

Explanation / Answer

JOURNAL ENTRIES Ref Account Debit Credit #1 Raw Material Inventory $15,000 AccountsPayable $15,000 #2 Work in Process -Job #101 $15,800 Work in Process -Job #102 $20,200 Work in Process -Job #103 $17,800 Work in Process -Job #104 $22,600 Wages Payable $76,400 #3 Manufacturing Overhead $11,500 Accrued expenses-Utilities $2,000 Accrued expenses-Repairs $3,500 Accumulated depreciation $6,000 #4 Work in Process -Job #101 $2,520 (420*6) 2520 Work in Process -Job #102 $3,800 (475*8) 3800 Work in Process -Job #103 $2,250 (450*5) 2250 Work in Process -Job #104 $6,240 (520*12) 6240 Raw Material Inventory $14,810 #5 Manufacturing overhead $7,200 (1800*4) Salaries and wagespayable $7,200 (indirect labor) RATE CALCULATION Annual overhead cost $280,000 Direct labor cost $350,000 Predetermined Overhead rate 0.8 (280000/350000) #6 Work in Process -Job #101 $12,640 (0.8*15800) Work in Process -Job #102 $16,160 (0.8*20200) Work in Process -Job #103 $14,240 (0.8*17800) Work in Process -Job #104 $18,080 (0.8*22600) Manufacturing Overhead $61,120 #7 Finished goods inventory-Job#101 $30,960 (15800+2520+12640) 30960 Finished goods inventory-Job#102 $40,160 (20200+3800+16160) 40160 Finished goods inventory-Job#103 $34,290 (17800+2250+14240) 34290 Finished goods inventory-Job#104 $46,920 (22600+6240+18080) 46920 Work in process inventory $152,330 #8 Accounts Receivable $190,413 (1.25*(30960+40160+34290+46920) Sales Revenue $190,413 Cost of goods sold $152,330 Finished goods inventory -Job#1 $30,960 Finished goods inventory -Job#2 $40,160 Finished goods inventory -Job#3 $34,290 Finished goods inventory -Job#4 $46,920

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