Randa Company Manufacturing Statement For Year Ended December 31, 2013 Direct Ma
ID: 2381007 • Letter: R
Question
Randa Company
Manufacturing Statement
For Year Ended December 31, 2013
Direct Materials
Raw materials inventory, December 31, 2013
39,000
Raw materials purchases
177,600
Raw materials available for use
216,600
Less raw materials inventory, December 31, 2013
-44,700
Direct materials used
171,900
Direct labor
227,000
Factory overhead
Factory computer supplies used
19,840
Indirect labor
49,000
Repairs--Factory equimpment
7,250
Rent cost of factory building
59,000
Total factory overhead costs
135,090
Total manufacturing costs
533,990
Goods in process inventory, December 31, 2013
55,900
Total cost of goods in process
589,890
Less goods in process inventory, December 31, 2013
-43,500
Cost of goods manufactured
546,390
Use information from the problem above to prepare journal entries for the following events for the month of May. Remember that a journal entry must debit at least one account and credit at least one account. Please use proper account titles.
1. Raw materials purchased for cash. 2. Direct materials usage.
3. Indirect materials usage.
4. Factory payroll costs Paid in cash.
5. Direct labor usage.
6. Indirect labor usage.
7. Factory overhead excluding indirect materials and indirect labor (record credit to OtherAccounts).
8. Application of overhead to goods in process.
9. Allocation of overapplied or underapplied overhead to Cost of Goods Sold.
Randa Company
Manufacturing Statement
For Year Ended December 31, 2013
Direct Materials
Raw materials inventory, December 31, 2013
39,000
Raw materials purchases
177,600
Raw materials available for use
216,600
Less raw materials inventory, December 31, 2013
-44,700
Direct materials used
171,900
Direct labor
227,000
Factory overhead
Factory computer supplies used
19,840
Indirect labor
49,000
Repairs--Factory equimpment
7,250
Rent cost of factory building
59,000
Total factory overhead costs
135,090
Total manufacturing costs
533,990
Goods in process inventory, December 31, 2013
55,900
Total cost of goods in process
589,890
Less goods in process inventory, December 31, 2013
-43,500
Cost of goods manufactured
546,390
Use information from the problem above to prepare journal entries for the following events for the month of May. Remember that a journal entry must debit at least one account and credit at least one account. Please use proper account titles. Raw materials purchased for cash. Direct materials usage. Indirect materials usage. Factory payroll costs Paid in cash. Direct labor usage. Indirect labor usage. Factory overhead excluding indirect materials and indirect labor (record credit to OtherAccounts). Application of overhead to goods in process. Allocation of overapplied or underapplied overhead to Cost of Goods Sold.Explanation / Answer
Statement of Goods Manufactured
Direct Materials
...Beginning raw materials 39,000
...Purchases of raw materials 177,600
...Less ending raw materials (44,700)
...Sub-total $171,900
Direct Labor $227,000
Factory Overhead
...Factory computer supplies used 19,840
...Indirect labor 49,000
...Repairs
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