Posted: July 25th, 2021

For rey writer | Accounting homework help

Farina Bay’s computer system generated the following trial balance on December 31, 2013. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.

  

    Debit     Credit  
  Cash $ 45,000        
  Accounts receivable   39,000        
  Raw materials inventory   24,500        
  Goods in process inventory   0        
  Finished goods inventory   9,000        
  Prepaid rent   3,000        
  Accounts payable       $ 11,100  
  Notes payable         14,100  
  Common stock         30,000  
  Retained earnings         93,000  
  Sales         162,300  
  Cost of goods sold   106,000        
  Factory payroll   18,000        
  Factory overhead   28,000        
  Operating expenses   38,000           
  

 

 
  Totals $ 310,500   $ 310,500  
  



 



 

  

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

  

  
  Materials requisition 21-3010:   $ 4,300  direct materials to Job 402
  Materials requisition 21-3011:   $ 7,600  direct materials to Job 404
  Materials requisition 21-3012:   $ 1,700  indirect materials
  Labor time ticket 6052:   $ 3,000  direct labor to Job 402
  Labor time ticket 6053:   $ 12,000  direct labor to Job 404
  Labor time ticket 6054:   $ 3,000  indirect labor

  

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 200% of direct labor cost.

 

a. Direct materials costs to Goods in Process Inventory.
b. Direct labor costs to Goods in Process Inventory.
c. Overhead costs to Goods in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.

  

Required:
1.

Prepare journal entries to assign the above costs.

 

  • Record direct materials costs for Jobs 402 and 404.

  • 2.

    Record direct labor costs for Jobs 402 and 404.

  • 3.

    Record the entry to allocate overheads to Jobs 402 and 404 at 200% of direct labor costs assigned.

  • 4.

    Record entry to assign cost of indirect materials.

  • 5.

    Record entry to assign cost of indirect labor

 

   

    

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