Happinessistheroad Corp. has the following information available regarding its materials: Managers expected to pay $5 per kilogr
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Answer:
NOTE:
Missing Information:
d. Accrued salary and wage costs:
Direct labor (970 hours) $320,000
Indirect labor $108,000
Selling and administrative salaries $200,000
e. Maintenance costs incurred on account in the factory, $72,000.
f. Advertising costs incurred on account, $154,000.
g. Depreciation was recorded for the year, $90,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment)
h. Rental cost incurred on account, $115,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities).
i. Manufacturing overhead cost was applied to jobs, $ _____
j. Cost of goods manufactured for the year, $950,000.
k. Sales for the year (ail on account) totaled $2.100.000. These goods cost $980.000 according to their job cost sheets.
Answer:
Schedule of goods sold and income statement of the year.
a) raw materials 220,000 debit
accounts payable 220,00 credit
b) WIP 205,000 debit
raw materials 205,000 credit
c) factory overhead 56,700 debit
utilities expense 6,300 debit
utilities payable 63,000 credit
d) WIP 320,000 debit
Factory overhead 108,000 debit
salaries expense 200,000 debit salaries and wages payables 628,000 credit
e) factory overhead 72,000 debit
cash 72,000 credit
f) advertizing expense 154,000 debit
cash 154,000 credit
g) factory overhead 67,500 debit
depreciation expense 22,500 debit
acc depreciation- equipment 90,000 credit
h) factory overhead 92,000 debit
rent expense 23,000 debit
cash 115,000 credit
i) WIP (970 hours x $380 per DHL) = 368,600 debit
factory overhead 368,600 credit
j) finished goods 950,000 debit
WIP 950,000 credit
k) account receivables 2,100,000 debit
sales revenues 2,100,000 credit
cost of goods sold 980,000 debit
finished goods 980,000 credit
Explanation:
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