E-27-2A : Cost of gods manufactured $287,500
Schedule of cost of goods manufactured. Prepare a schedule of cost of goods manufactured for Tomas
Company for the year ended June 30, 20-2. Information to prepare the schedule is as follows:
Work in process, July 1, 20-1
$6,400
Materials inventory, July 1, 20-1
4,875
Materials purchases
68,950
Direct labor
140,300
Actual factory overhead
85,225
Work in process, June 30, 20-2
7,700
Materials inventory, June 30, 20-2
6,950
Indirect materials charged to production
P 27-6A
3,600
Net income $104,845
Work sheet, adjusting entries, and financial statements Herrera Company had the following trial balance
columns on its work sheet.
Herrera Company
Trail Balance
December 31, 20—
Account Title
Debit Balance
Credit Balance
Cash-----------------------------------------------------------30,300.00--------------------------------------Government Notes------------------------------------------5,000.00-------------------------------------Interest Receivable-------------------------------------------------------------------------------------------Accounts Receivable--------------------------------------34,000.00---------------------------------------Allowance for Bad Debts-------------------------------------------------------------------530.00---------
Finished Goods Inventory--------------------------------24,000.00-------------------------------------Work in Process Inventory---------------------------------9,000.00-------------------------------------Materials Inventory------------------------------------------8,500.00-------------------------------------Office-Supplies------------------------------------------------3,100.00-------------------------------------Factory Supplies-----------------------------------------------3,800.00---------------------------------------Land-----------------------------------------------------------100,000.00--------------------------------------Factory Building---------------------------------------------120,000.00-------------------------------------Accumulated Depreciation—Factory Building-----------------------------------
10,000.00
Factory Equipment-------------------------------------------40,000.00-----------------------------------------Accumulated Depreciation—Factory Equipment-----------------------------------------5,000.00
Interest Payable----------------------------------------------------------------------------------------------------Accounts Payable---------------------------------------------------------------------------------13,800.00
Income Tax Payable----------------------------------------------------------------------------------------------Bonds Payable--------------------------------------------------------------------------------------80,000.00
Capital Stock----------------------------------------------------------------------------------------50,000.00
Paid-In Capital in Excess of Par-----------------------------------------------------------------30,000.00
Retained Earnings----------------------------------------------------------------------------------92,400.00
Cash Dividends----------------------------------------------30,000.00--------------------------------------Sales----------------------------------------------------------------------------------------------405,100.00--Interest Revenue-----------------------------------------------------------------------------------300.00—
Factory Overhead-------------------------------------------78,630.00----------------------------------------
Cost of Goods Sold-----------------------------------------190,700.00------------------------------------------------Wages Expense-----------------------------------------------70,000.00---------------------------------------------------
Office Supplies Expense------------------------------------------------------------------------------------------------------Bad Debit Expense---------------------------------------------------------------------------------------------------------------Utilities Expense---Office------------------------------------4,400.00------------------------------------------------------Interest Expense-----------------------------------------------7,000.00-----------------------------------------------------Income Tax Expense---------------------------------------18,000.00---------------------------------------------------------------------------------------------------------------------------776,430.00---------------------776,430.00-----------------Data for adjusting the accounts are as follows:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Factory overhead to be applied to work in process ending inventory
Interest receivable
Interest payable
Estimate of uncollectible accounts based on an aging of accounts receivable
Office supplies consumed
2,900
Factory supplies consumed
3,300
Factory building depreciation
5,000
Factory equipment depreciation
4,000
Over applied factory
1,470
Provision for corporate income taxes 6,100
Physical counts of the inventories agreed with the amounts in the books.
Additional information needed to prepare the financial statements is as follows:
Beginning inventories:
Finished goods January 1
$18,000
Work in process, January 1
7,300
Materials inventory, January 1
9,500
Materials purchases for the year 51,500
Direct labor
Actual factory overhead
60,000
90,930
Indirect materials charged to production
3,400
Required:
1. Prepare a work sheet
2. Prepare the following financial statements and schedule:
$3,100
$75
600
2,930
a.
b.
c.
d.
Income statement
Schedule of cost of goods manufactured
Retained earnings statement
Balance sheet