Cost Accounting

2AD/No.Absen 21 Oliviane Th. Wenno

E4-8
Cinnabar Company has provided the following data concerning its operation for the year ended December 31, 20A: Raw materials on hand, December 31 Work in process, December 31 Finished Goods, December 31 factory supplies on hand, December 31 Sales Factory maintenance Administrative salaries Discount on raw material purchases Delivery expense Interest income Factory supplies used Common stock ($10 par value) Retained earnings Trade accounts payable Acc. Depreciation-factory building and equipment Building and equipment Trade accounts receivable Cash Finished Goods, January 1, 20A Direct labor Bad debt expense Factory power and heat Advertising Insurance expired-factory building and equipment Work in process, January 1, 20A Depreciation-factory building and equipment Factory superintendence Interest expense Raw materials purchased Indirect factory labor Sales returns Sales discounts Required: Prepare the cost of goods sold statement. $ 24,000 $ 30,000 $ 70,000 $ 14,000 $ 1,100,000 $ 38,400 $ 108,000 $ 4,200 $ 16,000 $ 1,000 $ 22,400 $ 2,000,000 $ 525,000 $ 273,500 $ 47,500 $ 500,000 $ 450,000 $ 170,000 $ 37,500 $ 180,000 $ 2,500 $ 19,400 $ 8,400 $ 4,800 $ 84,000 $ 17,500 $ 100,000 $ 1,500 $ 400,000 $ 20,000 $ 2,200 $ 1,300

Cost Accounting Cinnabar Company Statement of COGS For Year Ended December 31 Raw materials: Purchases Discount on raw material purchased Raw materials on hand Cost of raw materials consumed Direct labor Factory overhead: Factory maintenance Factory supplies used Power and heat-factory Insurance expense-factory building and equipment Depreciation-factory building and equipment Factory superintendence Indirect factory labor Total factory overhead Total manufacturing cost Work in process, beginning Work in process, ending Cost of goods manufactured Finished goods, beginning Cost of goods available for sale Finished goods, ending Cost of goods sold

2AD/No.Absen 21 Oliviane Th. Wenno

400,000 (4,200) (24,000) 371,800 180,000 38,400 22,400 19,400 4,800 17,500 100,000 20,000 222,500 774,300 84,000 (30,000) 828,300 37,500 865,800 (70,000) 795,800

P5-8
On January 1, the general ledger of Jackson Company contained the following accounts and balances: Cash Accounts Receivable Finished Goods Work in Process Materials Machinery Acc. Depreciation-Machinery Accounts Payable Common stock Retained earnings $ $ $ $ $ $ $ $ $ $ 47,000 50,000 32,500 7,500 21,500 45,300 10,000 58,875 100,000 34,925

Cost Accounting Details of inventories are: Finished goods inventory: $32,500 Job 101 Work in Process Inventory: Direct Materials: 500 units of A @ $5 200 units of B @ $3 500 hours @ $4 200 hours @ $5 $ 2,500

2AD/No.Absen 21 Oliviane Th. Wenno

Job 102

$ $ 2,000

600

FOH applied ($2/DLH) $ 1,000 Total $ 5,500 Materials Inventory: $22,000 During January, the following transactions were completed: a. Materials were purchased on account for $115,020. b. Payroll totaling $110,000 was accrued. c. Payroll was distributed as follows: Job 101, 2,500 DLH @ $8; Job 102, 4,000 DLH @ $10; Job 103, 3,000 DLH @ $6; indirect labor, $12,000; marketing and administrative salaries, $20,000. d. Materials were issued as follows: $51,600 to Job 101; $42,000 to job 102; $14,575 to Job 103. Indirect materials costing $7,520 were issued. e. Factory overhead was applied to Jobs 101, 102, and 103 at a rate of $4.50/DLH. f. Jobs 101 and 102 were completed and immediately sold on account for $120,000 and $135,000 respectively. g. After allowing a 5% cash discount, a net amount of $247,000 was collected on accounts receivable. h. Marketing and administrative expenses (other than salaries) paid during the month amounted to $15,000. Miscellaneous factory overhead of $22,680 was paid in cash. Depreciation on factory machinery was $2,000. i. Payments on account, other than payrolls paid, amounted to $85,000. j. Applied FOH is closed to FOH. The overapplied or underapplied overhead is then closed to COGS. Required: Journalize the January transactions. a b c Materials Accounts Payable Payroll Accrued Payroll Accrued Payroll Cash WiP 101 WiP 102 WiP 103 FOH Control Mark. & Adm. Exp. Control 115,020 115,020 110,000 110,000 110,000 110,000 20,000 40,000 18,000 12,000 20,000

$ 1,000 $ 400 $ 2,000

Cost Accounting Payroll WiP 101 WiP 102 WiP 103 FOH Control Material WiP 101 WiP 102 WiP 103 Applied FOH COGS WiP 101 WiP 102 Cash Sales Discount Accounts Receivable Mark. & Adm. Exp. Control FOH Control Cash Acc. Dep. Machinery Accounts Payable Cash Applied Foh FOH Control COGS FOH Control 110,000 51,600 42,000 14,575 7,520 115,695 11,250 18,000 13,500 42,750 190,350 88,350 102,000 247,000 13,000 260,000 15,000 24,680 37,680 2,000 85,000 85,000 42,750 42,750 1,450 1,450

2AD/No.Absen 21 Oliviane Th. Wenno

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