1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Scorpion4ik [409]
2 years ago
6

The following trial balance was taken from the records of Fairport Manufacturing Company at the beginning of 2019:

Business
1 answer:
Rainbow [258]2 years ago
3 0

Answer:

Fairport Manufacturing Company

T-accounts

Cash

Account Titles                                Debit        Credit

Beginning balance                   $ 20,000

Accounts payable                                         $10,500

Wages payable                                               18,000

Selling and distribution expense                     1,800

Utilities and Rent for production                    9,300

Sales Revenue                            36,000

Ending balance                                           $16,400

Raw materials inventory

Account Titles                                Debit        Credit

Beginning balance                   $ 1,800

Accounts Payable                      11,400

Work-in-Process                                           $10,800

Ending balance                                              $2,400

Work in process inventory

Account Titles                                Debit        Credit

Beginning balance                   $ 2,400

Raw materials                            10,800

Wages Payable                          19,950

Overhead Applied                      11,970

Finished Goods Inventory                          $24,000

Ending balance                                             $21,120

Finished goods inventory

Account Titles                                Debit        Credit

Beginning balance                   $ 4,200

Work-in-Process                        24,000

Cost of goods sold                                       $25,500

Ending balance                                               $2,700

Property, plant, and equipment

Account Titles                                Debit        Credit

Beginning balance                   $ 15,000

Accumulated depreciation

Account Titles                                Debit        Credit

Beginning balance                                        $ 6,000

Depreciation expense                                     3,000

Ending Balance                         $9,000

Accounts Payable

Account Titles                                Debit        Credit

Raw materials                                               $12,000

Cash                                            $10,500

Ending balance                             $1,500

Wages Payable

Account Titles                               Debit         Credit

Work-in-Process                                          $19,950

Cash                                           $18,000

Ending balance                            $1,950

Common stock

Account Titles                                Debit        Credit

Beginning balance                                        $ 16,800

Retained earnings

Account Titles                                Debit        Credit

Beginning balance                                        $ 20,600

Production Supplies

Account Titles                                Debit        Credit

Accounts Payable                                              $600

Overhead                                      $422

Ending balance                              $178

Overhead Expenses

Account Titles                               Debit          Credit

Work-in-Process                                            $11,970

Cash (Utilities)                               9,300

Depreciation expense                  3,000

Production supplies                         422

Cost of goods sold (Underapplied)                  752

Sales Revenue

Account Titles                                Debit        Credit

Cash                                                             $36,000

Income Summary                       $36,000

Cost of Goods Sold

Account Titles                                Debit        Credit

Finished Goods Inventory       $25,500

Overhead (underapplied)                752

Income Summary                                        $26,252

Selling and Distribution Expense

Account Titles                               Debit          Credit

Cash                                          $1,800

Utilities and Rent

Account Titles                               Debit          Credit

Cash                                            $9,300

Overhead                                                       $9,300

Depreciation Expense - Plant & Equipment

Account Titles                               Debit          Credit

Accumulated Depreciation        $3,000

Overhead                                                       $3,000

b) Schedule of Cost of Goods Manufactured and Sold:

WIP Beginning Inventory         $ 2,400

Raw materials                            10,800

Direct labor                                19,950

Overhead Applied                      11,970

Cost of goods in production  $45,120

Ending WIP Inventory                21,120

Cost of manufactured           $24,000

Finished Goods Inventory     $ 4,200

Cost of manufactured            24,000

Cost of goods available       $28,200

Ending FG Inventory                 2,700

Cost of goods sold              $25,500

Income Statement for the year ended December 31, 2019:

Sales Revenue                      $36,000

Cost of Goods Sold                 26,252

Gross profit                                9,748

Selling and distribution exp.      1,800

Net income                              $7,948

Retained Earnings, January 1, 2019 $20,600

Net income                                             7,948

Retained Earnings, December 31,    $28,548

Balance Sheet as of December 31, 2019:

Assets:

Cash                                          $ 16,400

Raw materials inventory               2,400

Work in process inventory          21,120

Finished goods inventory            2,700

Production Supplies                         178     $42,798

Property, plant, and equipment 15,000

Accumulated depreciation          9,000      $6,000

Total assets                                                $48,798

Liabilities and Equity:

Accounts Payable                                        $1,500

Wages Payable                                              1,950

Total liabilities                                             $3,450

Common stock                         $16,800

Retained earnings                     28,548  $45,348

Total liabilities and equity                       $48,798

Explanation:

a) Data and Calculations:

Trial Balance at January 1, 2019:

Account Titles                                Debit        Credit

Cash                                         $ 20,000

Raw materials inventory                1,800

Work in process inventory           2,400

Finished goods inventory            4,200

Property, plant, and equipment 15,000

Accumulated depreciation                           $ 6,000

Common stock                                               16,800

Retained earnings                                         20,600

Total                                       $ 43,400      $ 43,400

Analysis of Transactions for the period:

1. Raw materials $11,400 Production Supplies $600 Accounts payable $12,000

2. Work-in-Process $10,800 Raw materials $10,800

3. Accounts payable $10,500 Cash $10,500

4. Work-in-Process $19,950 Wages Payable $19,950

5. Wages Payable $18,000 Cash $18,000

6. Work-in-Process $11,970 Overhead Applied $11,970 ($12,600 * 950/1,000)

7. Selling and Administrative expense $1,800 Cash $1,800

8. Utilities and Rent for production $9,300 Cash $9,300

9. Depreciation Expense-Plant and Equipment $3,000 Accumulated Depreciation $3,000

10. Finished Goods Inventory $24,000 Work-in-Process $24,000

11. Cost of Goods Sold $25,500 Finished Goods Inventory $25,500

12. Cash $36,000 Sales Revenue $36,000

13. Overhead $422 Production Supplies $422 ($600 - $178)

14. Cost of Goods Sold $752 Underapplied Overhead $752

Adjusted Trial Balance at December 31, 2019:

Account Titles                                Debit        Credit

Cash                                          $ 16,400

Raw materials inventory               2,400

Work in process inventory          21,120

Finished goods inventory            2,700

Property, plant, and equipment 15,000

Accumulated depreciation                          $ 9,000

Accounts Payable                                            1,500

Wages Payable                                                1,950

Common stock                                               16,800

Retained earnings                                         20,600

Production Supplies                        178

Sales Revenue                                               36,000

Cost of Goods Sold                 26,252

Selling and distribution exp.      1,800

Totals                                    $85,850        $85,850

You might be interested in
A firm in monopolistic competition tends to have more control over price when it is Group of answer choices more successful at d
Dafna1 [17]

Answer:

Answer A

Explanation:

Monopolistic competition is a market structure that is in the middle of monopoly and competitive market. All the firms in monopolistic competition have a low degree of market power and take prices as they are. Therefore, these firms advertise heavily as in the long run demand for their products is highly elastic, sensitive to price changes and in the short run economic profit is positive but gravitates towards zero in the long run. Any source of advantage in comparison to the competition can therefore be higher product differentiation.

7 0
2 years ago
1; Choose a business or an industry that is considered as a perfect market and explain which characteristics of a perfect market
Sophie [7]

Answer:

hey what kind of watch is that in your profile pic

4 0
3 years ago
Approximately __________ of trades involving shares issued by firms listed on the New York Stock Exchange actually take place on
Sophie [7]

Answer: B. 75%

Explanation: The NYSE accounts for a large majority of equity trades in the North America and worldwide. But not all trades actually do go on on the NYSE. I think this is because in 2007 they acquired Euronext which combined the NYSE with the five major European exchanges, inclusive of the Paris Bourse, Amsterdam, the London International Financial Futures etc. This merger bumped up their trading capacity to up to 10 billion shares per day. While 75% of trades do go on on the NYSE, the rest are handled by the other aspect of the merger deal, Euronext.

6 0
2 years ago
Like a good economist, you calculated the opportunity cost of getting your college degree. suppose that at your university, you
hammer [34]
<span>After 4 years of college, it would be better to not go to college. Since his high school job was paying $25,000 a year ($100,000 in four years), and going to college cost $20,500 ($82,000 in four years), after those four years he would still have over $18,000 to spend at his leisure, or $4,500 every year. This leftover money can be used to find a place for rent for at least $375.</span>
6 0
2 years ago
Read 2 more answers
Suppose you are a senator writing a bill to index Social Security and federal pensions. That is, your bill will adjust these ben
jolli1 [7]

Answer: The answer is consumer price index (CPI)

Explanation:

The consumer price index is the most popularly used price index to measure the level of inflation in the country.it is a measure of welfare which shows the amount of money needed by the people to provide for themselves a good standard of living. The consumer price index is based on the quantity of goods consumers are buying in the market, because it measures the level of changes in the consumer goods in the economy at a given period of time. It is used to measures the level at which family can afford to buy food, clothing, and live a comfortable life in the country. The consumer price index shows the percentage increase or decrease in the prices of consumer goods in the period in which it is measured. It is calculated as

CPI = current year price index / base year price index × 100%

Therefore, to adjust the social security and federal pensions to offset changes in the cost of living the consumer price index is the most appropriate measure of welfare to used. In the sense that the cost of living is the amount of money an average family will need to provide themselves with the basic necessities of life such as food, clothing ,and shelter. The consumer price index is the most appropriate to know the effect of increase or decrease in the prices of these goods on the low income earners in the country such as the people who receives social security benefits and the pensioners in the country. During inflation the purchasing power of the people in these categories is reduced which tend to have an effect on their standard of living.

6 0
2 years ago
Other questions:
  • If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end
    10·2 answers
  • Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the u
    5·1 answer
  • ______ is the use of a variety of statistical analysis tools in marketing research to uncover previously unknown patterns in dat
    8·1 answer
  • The equation representing the consumption schedule for the economy is:
    14·1 answer
  • In 1895, the first sporting event was held. The winner's prize money was $170. In 2007, the winner's check was $1,173,000. (Do n
    13·1 answer
  • This company reports only total factory overhead on the schedule of cost of goods manufactured and attaches a separate schedule
    9·1 answer
  • Your firm is considering the purchase of a new office phone system. You can either pay $ 32 comma 500 ​now, or $ 900 per month f
    10·1 answer
  • You can always withdraw the money you have contributed to a Roth IRA without paying taxes on the withdrawal because you have alr
    13·1 answer
  • g Suppose total output (real GDP) is $1,000 and labor productivity is $10. We can conclude that the number of worker hours must
    15·1 answer
  • What is the main challenge that red frog events faces as the organization grows?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!