E2 – 14

1. 40,000/10,000= 4 days
2. 40,000-(40,000x.75) – 10,000
10,000/10,000= 1 day

E2 – 15

a. Raw and In – Process 80,000

Accounts Payable 80,000
b. No Entry
c. Conversion Costs 10,000

Payroll 10,000

d. Conversion Costs 60,000

Various Credits 60,000

e. Finished Goods 150,000

Raw and In – Process 80,000

Conversion Costs 70,000

f. Accounts Receivable 225,000

Sales 225,000

Cost of Goods Sold 150,000

Finished Goods 150,000

E-16

e. No Entry

f. Cost of Goods Sold 150,000

Raw and In – Process 80,000

Conversion Costs 70,000

E-17

a. Raw and In – Process 70,000

Accounts Payable 70,000
b. No Entry
c. Conversion Costs 15,000

Payroll 15,000

d. Conversion Costs 45,000

 Various Credits 45,000
e. Finished Goods 130,000

Raw and In – Process 70,000

Conversion Costs 60,000

f. Accounts Receivable 195,000

Sales 195,000

Cost of Goods Sold 130,000

Finished Goods 130,000

E2 – 18

e. No entry

f. Cost of Goods Sold 130,000

Raw and In – Process 70,000

Conversion Costs 60,000

E2 – 19

a. Scrap Materials 125

Factory Overhead(Scrap) 125

Cash 125
Scrap Materials 125
b. No entry at the time scrap is identified

At the time of Sale

Cash 75

Factory Overhead(Scrap) 75

c. No entry at the time scrap is identified

At the time of Sale

Accounts Receivable 85

Work – In Process 85

d. No entry at the time scrap is identified

At the time of Sale

Cash 40

Scrap Revenue 40