Box Company makes shipping containers The Trial

Balance section of #8012

Box Company makes shipping containers. The Trial Balance section of its worksheet and other
year-end data follow. INSTRUCTIONS1. Prepare a 12-column manufacturing worksheet for the
fiscal year ended December 31, 2016. Enter the trial balance in the first two columns.2. Using
the data given, enter the adjustments and complete the worksheet. Label all inventory
adjustments as (a).3. Prepare a statement of cost of goods manufactured.4. Prepare an income
statement.5. Prepare a statement of retained earnings. Additional data follows:a. Balance of
Retained Earnings, January 1, was $185,000.b. Dividends declared and paid on common stock
during the year were $10,000.6. Prepare a balance sheet as of December 31, 2016. Common
Stock, $1 par, was authorized for100,000 shares and 50,000 shares were outstanding.7.
Record the adjusting entries shown on the worksheet in general journal form. For each journal
entry, use the letter that identifies the adjustment on the worksheet. Make a separate entry for
each inventory adjustment. Do not give explanations.8. Prepare the closing entries for all
accounts involved in the cost of goods manufactured.9. Prepare the closing entries for all
revenue and expense accounts and the Manufacturing Summary account.10. Prepare the
closing entry to close the Income Summary account.11. Journalize the reversing entries. Date
the entries January 1, 2017.YEAR-END DATAa. Ending inventories: finished goods, $25,000;
work in process, $36,000; and raw materials, $21,000.b. Estimated uncollectible accounts:
increase Allowance for Uncollectible Accounts to 4 percent of Accounts Receivable.c. Expired
insurance, $2,000; debit the Insurance-Factory account for the amount of the necessary
adjustment.d. Factory supplies on hand, $1,000.e. Depreciation for the year: on factory building,
$15,000; on factory machinery, $5,000; and on office equipment, $2,000.f. Accrued factory
wages: direct labor, $1,800; indirect labor, $200.g. Accrued payroll taxes: social security, $124;
Medicare tax, $29.h. Total income tax expense for the year, $34,212.Analyze: Assume that the
industry standard for direct labor costs in its manufacturing industry is 31 percent of costs of
goods manufactured. How does this company compare to others in regard to this standard?
Explain.View Solution:
Box Company makes shipping containers The Trial Balance section of

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