4/30/2016 Chap 11 Problem for POINTS ACCT2012 Princ of Managerial Accounting: Sp

Question

4/30/2016 Chap 11 Problem for POINTS ACCT2012 Princ of Managerial Accounting: Spring 2016 ON-LINE Chrystal Richter Chap 11 Problem for POINTS instructions I help value 10.00 points Problem 11-20A Manufacturing cost for one accounting cycle LO 11-1, 11-2, 11-3 The following trial balance was taken from the records of Leggett Manufacturing Company at the beginning of 2015. Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment Accumulated depreciation Common stock Retained eanings 9,460 770 1,23 2,100 8,150 $ 3,100 8,500 10,110 Total $21,710 $21,710 Transactions for the Accounting Period 1. Leggett purchased $6,100 of direct raw materials and $370 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,800 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand 2. By the end of the year, $5,250 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 820 hours recorded in the Wages Payable account at $10.50 ss70 - s 0054510 per hour 4. By the end of the year, $7,710 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $4,785 and 870 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 820 for the year. 6. Selling and administrative expenses for the year amounted to $1,000 paid in cash. 7. Utilities and rent for production facilities amounted to $4,720 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,580 9. There was $11,600 of goods completed during the year 10. There was $13,050 of finished goods inventory sold for $18,200 cash. 11. A count of the production supplies revealed a balance of $97 on hand at the end of the year wrl in pogess 12. Any over-or underapplied overhead is considered to be insignificant. Required: Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts. (Note: Open new T-accounts as needed.) a. Cash Raw Materials o&70 58D0 58005800 Beg, Bal. aye Beg. Bal. -110 30 110 110 y 5oddB 4130 End. Bal.1010 D 8130 End. Bal Work in Process Accounts Payable Beg. Bal. 00 Beg. Bal 5800 o S10 End. Bal B00 End. Bal. http://eztorm heducation.com/hm.tpx?0.7365810963938303 1462048928050 1/4

Explanation / Answer

Correct details are provided as under:

Cash Particulars Amount ($) Particulars Amount ($) Beginning Balance 9,460 2 5,250 10 18,200 4 7,710 6 1,000 7 4,720 27,660 18,680 Closing balance 8,980 Common stock Particulars Amount ($) Particulars Amount ($) Beginning Balance 8,500 Closing balance 8,500 Wages Payable Particulars Amount ($) Particulars Amount ($) 4 7710 3 8,610 7710 8610 Closing balance 900 Accumulated Depreciation Particulars Amount ($) Particulars Amount ($) Beginning Balance 3,100 8 1,580 4,680 Closing balance 4,680 Sales Revenue Particulars Amount ($) Particulars Amount ($) cl. 18,200 10 18,200 Cost of goods sold Particulars Amount ($) Particulars Amount ($) 10 13,050 cl. 15,113 12 2,063 Selling and administartive expenses Particulars Amount ($) Particulars Amount ($) 6 1000 cl. 1,000 Accounts payable Particulars Amount ($) Particulars Amount ($) 2 5,250 1 6,470 5,250 6,470 Closing balance 1,220 Property,plant and equipment Particulars Amount ($) Particulars Amount ($) Beginning balance 8,150 Closing balance 8,150 Retained Earnings Particulars Amount ($) Particulars Amount ($) Beginning Balance 10,110 cl. 2,087 12,197 Closing balance 12,197 Manufacturing overhead Particulars Amount ($) Particulars Amount ($) 7 4,720 5 4,510 8 1,580 12 2,063 11 273 6,573 6,573 Production Supplies Particulars Amount ($) Particulars Amount ($) 1 370 11 273 370 273 Closing balance 97 Raw material Particulars Amount ($) Particulars Amount ($) Beginning Balance 770 1 5,800 1 6,100 6,870 5,800 Closing balance 1,070 Work in process Particulars Amount ($) Particulars Amount ($) Beginning Balance 1,230 9 11,600 1 5,800 3 8610 5 4510 20,150 11,600 Closing balance 8,550 Finished Goods Particulars Amount ($) Particulars Amount ($) Beginning Balance 2,100 10 13,050 9 11,600 13,700 13,050 Closing balance 650

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

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