The Journal entries are complete and 100% correct, I just need the steps after (

Question

The Journal entries are complete and 100% correct, I just need the steps after (starting with T accounts). The entries are:

b.) Debit Raw materials inventory 200,000

Credit Accounts payable 200,000

c.) Debit Work In Process 173,000

Debit Manufacturing Overheard 12,000

Credit Raw Materials Inventory 185,000

D.) Debit Work In Process Inventory 155,000

Debit Manufacturing Overhead 52,500

Credit Cash 207,500

E.) Debit Manufacturing Overhead 61,500

Credit Accumulated Depreciation 26,000

Credit Cash 35,500

F.) Debit Advertising Expense 55,000

Debit Sales Commissions Expense 58,000

Credit Cash 113,000

G.) Debit Work In Process Inventory 132,750

Credit Manufacturing Overhead 132,750

H.) Debit Finished Goods Inventory 457,000

Credit Work In Process Inventory 457,000

I.) Debit Accounts Receivables 735,000

Credit Sales Revenue 735,000

I.) Debit Cost of Goods Sold 441,000

Credit Finished Goods Inventory 441,000

J.) Debit Manufacturing Overhead 6,750

Credit Cost of Goods Sold 6,750

2. Shellenback Inc. has provided the following information for April 20x5: a. Beginning balances: raw material S20,000, in-process S30,000 and finished goods $15,000. b. Purchased raw materials on account for $200,000. c. Issued $185,000 in raw materials to production (S 12,000 were not traceable to specific jobs). d. Incurred $155,000 in direct labor costs (14,750 hours), $52,500 in supervision costs (paid in cash). e. Incurred the following additional manufacturing overhead costs: factory lease S22,000 (paid in cash); depreciation on equipment $26,000; factory utilities S13,500 (paid in cash). r. Incurred the following nonmanufacturing costs, both paid in cash: advertising S55,000; sales commissi S58,000. ons g. Applied manufacturing overhead to jobs in process at a rate of S9 per direct labor hour. h. Completed jobs costing a total of $457,000. i. Sold jobs for S735,000 on account. The cost of the jobs was $441,000. Closed the manufacturing overhead account balance. j. Required: (15 points) Record the transaction journal entries. Post the transactions to T accounts Compute over or underapplied manufacturing overhead. If the balance in the Manufacturing Overhead account is closed directly to Costof Goods Sold, will it increase or decrease? Prepare cost of goods manufactured report for April Prepare April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead.

Explanation / Answer

T Accounts

Manufacturing Overhead

Overapplied manufacturing overhead will decrease cost of goods sold.

Raw Material Inventory Account Particulars Debit Credit Opening Balance 20000 Accounts Payable 200000 Work in Process 173000 Manufacturing Overhead 12000 Closing Balance 35000 Total 220000 220000 Work in Process Account Particulars Debit Credit Opening Balance 30000 Raw Material Inventory 173000 Cash 155000 Manufacturing Overhead 132750 Finished Goods Inventory 457000 Closing Balance 33750 Total 490750 490750 Finished Goods Inventory Account Particulars Debit Credit Opening Balance 15000 Work in Process Inventory 457000 Cost of Goods Sold 441000 Closing Balance 31000 Total 472000 472000 Manufacturing Overhead Account Particulars Debit Credit Raw Material Inventory 12000 Cash 52500 Accumulated Depreciation 26000 Cash 35500 Work in Process Inventory 132750 Cost of Goods Sold 6750 Closing Balance Total 132750 132750 Cash Account Particulars Debit Credit Work in Process Inventory 155000 Manufacturing Overhead 52500 Manufacturing Overhead 35500 Advertising Expense 55000 Sales Commission Expense 58000 Total 356000 356000 Accumulated Depreciation Particulars Debit Credit Manufacturing Overhead 26000 Closing Balance 26000 Total 26000 26000 Sales Commission Expense Particulars Debit Credit Cash 58000 Closing Balance 58000 Total 58000 58000 Advertising Expense Particulars Debit Credit Cash 55000 Closing Balance 55000 Total 55000 55000 Accounts Payable Account Particulars Debit Credit Raw Material Inventory 200000 Closing Balance 200000 Total 200000 200000 Accounts receivable Account Particulars Debit Credit Sales Revenue 735000 Closing Balance 735000 Total 735000 735000 Sales Revenue Particulars Debit Credit Accounts receivable 735000 Closing Balance 735000 Total 735000 735000 Cost of Goods Sold Particulars Debit Credit Finished Goods Inventory 441000 Manufacturing Overhead 6750 Closing Balance 434250 Total 441000 441000

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