3 Problem 20-1A Production cost flow and measurement: journal entries LO P1, P2,

Question

3 Problem 20-1A Production cost flow and measurement: journal entries LO P1, P2, P3, P4 (The following information applies to the questions displayed below Slerra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for of 2 one of its processing departments. The following information is available regarding its May inventories Inventory ntory Work in process inventory Finished goods inventory 20,00597,880 624,000587,00 The following additional information describes the company's production activities for May Print Ran materials purchases (on credit) Factory nages cost (paid in cash) Other overhead cost (Other Accounts credite:) s 280,000 1,599,000 83,000 s 197,800 78,880 Indirect Direct Indirect 1208 s5,508,030 The predetermined overeed rate wes computed at the beginning of the year as 120% of direct labor cost

Explanation / Answer

Raw Materials (RM) Beg. Bal. 51000 Accounts payable (RM Purchases) 280000 WIP 197000 Factory overhead 78000 End. Bal. 56000 Factory Payroll Payable Cash 1599000 WIP 800000 Factory overhead 799000 Factory Overhead Other Accounts 83000 WIP (Overhead applied) 960000 RM 78000 Factory payroll payable 799000 Work in Process (WIP) Beg. Bal. 420000 RM 197000 Transferred to FG 1780000 Factory payroll payable 800000 Factory overhead 960000 End. Bal. 597000 Finished Goods (FG) Beg. Bal. 624000 WIP 1780000 Cost of goods sold 1817000 End. Bal. 587000 Factory Overhead Other Accounts 83000 WIP (Overhead applied) 960000 RM 78000 Factory payroll payable 799000 Income Statement (Partial) Sales 5500000 Cost of goods sold 1817000 Gross Profit 3683000 Cost of products transferred from poduction to finished goods: $1780000 Cost of goods sold: $1817000

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.