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materials inventories on
UltraLift Corp manufactures chain hoists The raw materials inventories on
UltraLift Corp. manufactures chain hoists. The raw materials inventories on hand on October 1
were as follows:
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,000
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,000
Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000
a. Payroll recorded during the month: direct labor, $28,000; indirect labor, $4,800.
c. Materials purchased on account: chain–4,000 lb, $8,800; pulleys–2,000 sets, $10,200; steel
plates–5,000 units, $3,000.
f. Materials used during October (FIFO costing): chain–14,000 lb; pulleys–4,400 sets; bolts and
i. Factory heat, light, and power costs for October, $3,000 (not yet paid).
Required:
3. Post the journal entries to the accounts, setting up any new ledger accounts necessary. Only
controlling accounts are to be maintained; however, show the calculation for the cost of
materials used.
6. Prepare a balance sheet showing the classifications of current assets, plant and equipment,
current liabilities, and stockholders’ equity.