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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 Other
Accounts).

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