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3 years ago

Blue Plate Construction organized in December and recorded the following transactions during its first month of operations.

Business

1 answer:

jekas [21]3 years ago

4 0

Answer:

a. Journal entries

Dec. 2

Raw Materials $400,000 (debit)

Accounts Payable $400,000 (credit)

Dec. 3

Work In Process : job no. 100 $100,000 (debit)

Raw Materials $100,000 (credit)

Dec. 9

Work In Process : job no. 101 $150,000 (debit)

Raw Materials $150,000 (credit)

Dec. 15

Work In Process : job no. 102 $30,000 (debit)

Raw Materials $30,000 (credit)

Dec. 28

Work In Process : job no. 100 $9,000 (debit)

Work In Process : job no. 101 $11,000 (debit)

Work In Process : job no. 102 $5,000 (debit)

Salaries Payable $100,000 (credit)

Dec. 28

Work In Process : job no. 100 $27,000 (debit)

Work In Process : job no. 101 $33,000 (debit)

Work In Process : job no. 102 $15,000 (debit)

Overheads $75,000 (credit)

Dec. 29

Finished Goods : job no. 100 $136,000 (debit)

Finished Goods : job no. 101 $194,000 (debit)

Work In Process : job no. 100 $136,000 (credit)

Work In Process : job no. 101 $194,000 (credit)

Dec. 30

Accounts Receivable $200,000 (debit)

Cost of Sales : job no. 100 $136,000 (debit)

Sales Revenue $200,000 (credit)

Finished Goods : job no. 100 $136,000 (credit)

Dec. 31

Overheads $78,000 (debit)

Cash $78,000 (credit)

Dec. 31

Cost of Sales $3,000 (debit)

Overheads $3,000 (credit)

b. Cost of Goods Sold

Cost of Sales : job no. 100 $136,000

Add Under - Applied Overheads $3,000

Cost of Goods Sold $139,000

c. inventory balances

Work In Process Balance $50,000

Finished Goods Balance $194,000

Raw Materials Balance $120,000

d. Manufacturing Overheads Application

Manufacturing Overheads were under-applied by $3,000

Explanation:

Raw Materials Balance :

Raw Materials Purchase $400,000

Less Materials Used

job no. 100 ($100,000)

job no. 101 ($150,000)

job no. 102 ($30,000)

Raw Materials Balance $120,000

Work In Process Balance :

Only job no. 102 was yet to be completed

Costs of this job is as follows :

Raw Materials $30,000

Direct Labor $5,000

Overheads $15,000

Work In Process Balance $50,000

Finished Goods Balances :

Only Job 101 was completed and yet to be sold

Raw Materials $150,000

Direct Labor $11,000

Overheads $33,000

Finished Goods Balance $194,000

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