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    Cost Accounting Entries

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    Sibgha
    The document provides accounting entries for a manufacturing company over a period of time. It records the purchase and use of materials, payroll expenses, overhead allocations, completion and transfer of jobs, sales, collection of accounts receivable and payment of accounts payable. The entries track the flow of costs from raw materials to work in process to finished goods and the resulting sales and cash flows.

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    Download as DOC, PDF, TXT or read online from Scribd

    Cost Accounting Entries

    Uploaded by

    Sibgha
    2K views4 pages
    The document provides accounting entries for a manufacturing company over a period of time. It records the purchase and use of materials, payroll expenses, overhead allocations, completion and transfer of jobs, sales, collection of accounts receivable and payment of accounts payable. The entries track the flow of costs from raw materials to work in process to finished goods and the resulting sales and cash flows.

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    Cost Accounting Entries

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    The document provides accounting entries for a manufacturing company over a period of time. It records the purchase and use of materials, payroll expenses, overhead allocations, completion and transfer of jobs, sales, collection of accounts receivable and payment of accounts payable. The entries track the flow of costs from raw materials to work in process to finished goods and the resulting sales and cash flows.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    2K views4 pages

    Cost Accounting Entries

    Uploaded by

    Sibgha
    The document provides accounting entries for a manufacturing company over a period of time. It records the purchase and use of materials, payroll expenses, overhead allocations, completion and transfer of jobs, sales, collection of accounts receivable and payment of accounts payable. The entries track the flow of costs from raw materials to work in process to finished goods and the resulting sales and cash flows.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4
    At a glance
    Powered by AI
    The document shows journal entries for a manufacturing company across multiple periods. It tracks materials, labor, overhead and the flow of costs through work in process and finished goods.

    The document appears to be tracking the financial activities of a manufacturing company through journal entries across different periods.

    Jobs 101-104 seem to represent different production jobs or projects. Materials and labor costs are being tracked and allocated to each job.

    QUESTION

    1. Raw materials at a cost of $50,000 and general factory supplies costing $8,000 were purchased on
    account. (Materials and supplies are recorded in the materials account.)

    2. Raw materials to be used in production costing $41,000 and miscellaneous factory supplies costing
    $5,500 were issued.

    3. Wages and salaries incurred and paid for the month were as follows: factory wages (including $2,500
    indirect labor), $34,000, and selling and administrative salaries, $5,000. (Ignore payroll withholdings and
    deductions.)

    4. Distributed the payroll in (c).

    5. Depreciation was recorded for the month at an annual rate of 5% on the building and 20% on the factory
    equipment and office equipment. The sales and administrative staff uses approximately one-fifth of the
    building for its offices.

    6. During the month, various other expenses totaling $5,200 were incurred on account. The company has
    determined that one-fourth of this amount is allocable to the office function.

    7. Total factory overhead costs were transferred to Work in Process.

    8. During the month, goods with a total cost of $79,000 were completed and transferred to the finished
    goods storeroom.

    9. Sales for the month totaled $128,000 for goods costing $87,000 to manufacture. (Assume that all sales
    were made on account.)

    10. Accounts receivable in the amount of $105,000 were collected.

    11. Accounts payable totaling $55,000 were paid.

    12. Purchased raw materials at a cost of $45,000 and general factory supplies at a cost of $13,000 on account
    (recorded materials and supplies in the materials account).

    13. Issued raw materials to be used in production, costing $47,000, and miscellaneous factory supplies,
    costing $15,000.

    14. Recorded the payroll, the payments to employees, and the distribution of the wages and salaries earned
    for the month as follows: factory wages (including $12,000 indirect labor), $41,000; and selling and
    administrative salaries, $7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll
    withholdings and deductions.)

    15. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory
    equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-
    fifth of the building for its offices.

    16. Incurred various other expenses totaling $11,000. One-fourth of this amount is allocable to the office
    function.

    17. Transferred total factory overhead costs to Work in Process.

    18. Completed and transferred goods with a total cost of $91,000 to the finished goods storeroom.
    Page 1 of 4
    19. Sold goods costing $188,000 for $362,000. (Assume that all sales were made on account.)
    20. Collected accounts receivable in the amount of $345,000.
    21. Paid accounts payable totaling $158,000.

    22. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,000

    23. Materials issued to the factory:


    Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200
    Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,700
    Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100
    Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700
    For general use in the factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350

    24. Factory wages and salaries earned:


    Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,700
    Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,800
    Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,200
    Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100
    For general work in the factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250

    25. Miscellaneous factory overhead costs on account . . . . . . . . . . . . . . . . $ 2,400

    26. Depreciation of $2,000 on the factory machinery recorded.

    27. Factory overhead allocated as follows:


    Job 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,200
    Job 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
    Job 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,800
    Job 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

    28. Jobs 101, 102, and 103 completed.

    29. Jobs 101 and 102 shipped to the customer and billed at $39,000.

    30. Raw material purchased $ 10,000

    SOLUTION

    1. Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,000
    Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,000

    2. Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000


    Factory Overhead (Indirect Materials) . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500
    Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,500

    3. Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000
    Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000

    Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000


    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000

    Page 2 of 4
    4. Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,500
    Factory Overhead (Indirect Labor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
    Selling and Administrative Expenses (Salaries) . . . . . . . . . . . . . . . . . . . 5,000
    Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000

    5. Factory Overhead (Depreciation of Building) . . . . . . . . . . . . . . . . . . . . . 520


    Factory Overhead (Depreciation of Factory Equipment) . . . . . . . . . . . 1,800
    Selling and Administrative Expenses (Depreciation of Building) . . . 130
    Selling and Administrative Expenses (Depreciation of Office Equipment) . 200
    Accumulated Depreciation—Building . . . . . . . . . . . . . . . . . . . . . . . . . 650
    Accumulated Depreciation—Factory Equipment . . . . . . . . . . . . . . . 1,800
    Accumulated Depreciation—Office Equipment . . . . . . . . . . . . . . . . . 200

    6. Factory Overhead (Miscellaneous) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900


    Selling and Administrative Expenses (Miscellaneous) . . . . . . . . . . . . 1,300
    Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,200

    7. Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,220


    Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,220

    8. Finished Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,000


    Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,000

    9. Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,000


    Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,000

    Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,000


    Finished Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,000

    10. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000


    Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000

    11. Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000


    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000

    12. Materials ..................................................................... 58,000


    Accounts Payable ................................................... 58,000
    13. Work in Process .......................................................... 47,000
    Factory Overhead (Indirect Materials) ......................... 15,000
    Materials ................................................................. 62,000
    14. Payroll ......................................................................... 48,000
    Wages Payable ....................................................... 48,000

    Wages Payable .......................................................... 48,000


    Cash........................................................................ 48,000

    Work in Process .......................................................... 29,000


    Factory Overhead (Indirect Labor) .............................. 12,000
    Selling and Administrative Expenses(Salaries) ............ 7,000
    Payroll ..................................................................... 48,000
    15. Factory Overhead (Depreciation of Building) .............. 1,600
    Factory Overhead (Depreciation of Factory Equipment) 1,833*

    Page 3 of 4
    Selling and Administrative Expenses(Depreciation of Building) 400
    Selling and Administrative Expenses (Depreciation of Office Equipment) 1,000
    Accumulated Depreciation—Building ...................... 2,000
    Accumulated Depreciation—Factory Equipment .... 1,833*
    Accumulated Depreciation—Office Equipment ....... 1,000
    16. Factory Overhead (Miscellaneous) ............................. 8,250
    Selling and Administrative Expenses (Miscellaneous) ..2,750
    Accounts Payable ................................................... 11,000
    17. Work in Process .......................................................... 38,683
    Factory Overhead ................................................... 38,683
    18. Finished Goods........................................................... 91,000
    Work in Process ..................................................... 91,000
    19. Accounts Receivable .................................................. 362,000
    Sales ...................................................................... 362,000

    Cost of Goods Sold ..................................................... 188,000


    Finished Goods ...................................................... 188,000
    20. Cash ........................................................................... 345,000
    Accounts Receivable .............................................. 345,000
    21. Accounts Payable ....................................................... 158,000
    Cash ....................................................................... 158,000

    22. Materials ..................................................................... 37,000


    Accounts Payable .................................................. 37,000
    23. Work in Process .......................................................... 16,700
    Factory Overhead ....................................................... 1,350
    Materials ................................................................ 18,050
    24. Payroll ......................................................................... 23,050
    Wages Payable ..................................................... 23,050

    Work in Process .......................................................... 20,800


    Factory Overhead ....................................................... 2,250
    Payroll ................................................................... 23,050
    25. Factory Overhead ....................................................... 2,400
    Accounts Payable ................................................. 2,400
    26. Factory Overhead ....................................................... 2,000
    Accumulated Depreciation—Machinery ................ 2,000
    27. Work in Process ......................................................... 8,000
    Factory Overhead ................................................. 8,000
    28. Finished Goods* ......................................................... 40,700
    Work in Process .................................................... 40,700
    29. Accounts Receivable .................................................. 39,000
    Sales ..................................................................... 39,000

    Cost of Goods Sold** .................................................. 20,600


    Finished Goods ..................................................... 20,600

    30. Materials 10,000

    Account payable 10,000

    Page 4 of 4

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