Name: Sarah Onderko

Review Problem Chapters 1 thru 4

1.
For each T-account transaction, enter the Date, the Activity, the Transaction letter and the
Amount. Also, show the total Debits/Credits and the ending Account Balance (Debit/Credit).
Date Activity Trans Amount Date Activity Trans Amount

Cash
10/01/13 Balance 22,500.00 43,706.00
55,500.00 10,450.00
78,000.00 54,156.00
20,224.00

Accounts Receivable
10/01/13 Balance 21,700.00 55,500.00
43,140.00 9,340.00
64,840.00 64,840.00

Finished Goods
10/01/13 Inventory 8,750.00 28,760
78,700.00 58,690
87,450.00 87,450
58,690.00

Work In Process
10/01/13 Inventory 3,600.00 78,700
52,600.00 25,000
25,500.00 103,700
22,000.00
103,700.00
25,000.00

Materials
10/01/13 Balance 15,000.00 55,050
68,500.00
83,500.00
28,450.00

Prepaid Insurance
10/01/13 Balance 4,320.00 120
4,200.00 4,200

Factory Building
10/01/13 Balance 64,000.00

Accumulated Depreciation - Factory Building

10/01/13 Balance 22,500
267
22,767

Machinery and Equipment

10/01/13 Balance 38,000.00

Accumulated Depreciation - Machinery and Equipment

10/01/13 Balance 16,000
 633
16,633

Office Equipment
10/01/13 Balance 10,500.00

Accumulated Depreciation - Office Equipment

10/01/13 Balance 7,500
175
7,675
 Accounts Payable
10/01/13 Balance 2,500
69,500
72,000

FICA Tax Payable

10/01/13 Balance 3,120
4,264

7,384
7,384

Federal Unemployment Tax Payable

10/01/13 Balance 364
533
897

State Unemployment Tax Payable

10/01/13 Balance 1,404
2,132
3,536

Employees Income Tax Payable

10/01/13 Balance 5,200
5,330
10,530
10,530

Wages Payable
43,706.00 43,706

Capital Stock
10/01/13 Balance 75,000

Retained Earnings
10/01/13 Balance 54,782

Factory Overhead
21,750.00

21,750.00
21,750.00

Factory Overhead - Stamping

9,768.40

-
9,768.40
9,768.40

Factory Overhead - Plating

6,559.80
6,559.80
6,559.80
 Applied Factory Overhead - Stamping
10,500.00 10,500.00

Applied Factory Overhead - Plating

11,500.00 11,500.00
11500
Factory Overhead - Power
2,214.10

2,214.10
2,214.10
Factory Overhead - Maintenance
3,207.70

Under/Overapplied Overhead
250.00

Sales
126,375.00 126,375.00

Cost of Goods Sold

28,760.00

Payroll
43,760.00

Salaries
183,000.00

Payroll Tax Expense - Salaries

2,685.00

Miscellaneous Selling & Administrative Expense

Balance 1,500.00

Depreciation Expense - Office Equipment

Balance 175.00
 Materials Inventory Ledger Cards
Material A
Units Unit Cost Total
Beginning Balance 120 $ 25 $ 3,000
Purchases 1,100 $ 26 $ 28,600
Issued Job 1001 (120) $ 25 $ (3,000)
Issued Job 1001 (480) $ 26 $ (12,480)
Issued Job 1002 (400) $ 26 $ (10,400)
Ending Balance 220 $ 26 $ 5,720

Material B
Units Unit Cost Total
Beginning Balance 320 $ 15 $ 4,800
Purchases 900 $ 16 $ 14,400
Issued Job 1001 (320) $ 15 $ (4,800)
Issued Job 1001 (80) $ 16 $ (1,280)
Issued Job 1002 (200) $ 16 $ (3,200)
Ending Balance 620 $ 16 $ 9,920
Material C
Units Unit Cost Total
Beginning Balance 180 $ 30 $ 5,400
Purchases 800 $ 28 $ 22,400
Issued Job 905 (180) $ 30 $ (5,400)
Issued Job 905 (20) $ 28 $ (560)
Issued Job 1001 (400) $ 28 $ (11,200)
Ending Balance 380 $ 28 $ 10,640

Factory Supplies
Total
Beginning Balance $ 13,200
Purchases $ 65,400
Issued $ (52,320)
Ending Balance $ 26,280
 Job Cost Sheets
Job 905
Date Materials Labor Overhead Total
1-Oct 1,500 1,200 900 3,600
October
1,500 1,200 900 3,600

Job 1001
Date Materials Labor Overhead Total
1-Oct 1,000
October
1,000 - - 1,000

Job 1002
Date Materials Labor Overhead Total
1-Oct 500
October
500 - - 500
 Transaction Journal Entries
(a) Supplies
Accounts Payable
Purchased materials and supplies on account.

(b)

Narrative

(c)

Narrative

Narrative

Narrative

(d) FICA Tax Payable 4,264.00

Federal Unemployment Tax Payable 533.00
State Unemployment Tax Payable 2,132.00
Employee Income Tay Payable 5,330.00
Tax Payable
Miscellanrous Factory Overhead incurred During October.

(e)

Accumulated Depreication- Factory Buildings

Accumulated Depreication- Machinery and Equipment
Accumulated Depreication- Office Equipment
Annual Depreciation

(f) Insurance Expense 120.00

Prepaid Incurance
Paid Prepaid Insurance

(g) Stamping 9,768.40

Planting 6,559.80
Power 2,214.10
Maitenance 3,207.70
 Factory Overhead
Summary of the Factory overhead

(h)

Narrative

Narrative

(i) Work In Process 22,000.00

Applied Factory Overhead-Stamping
Applied Factory Overhead-Plating
To Apply Overhead to Work In Process
Stamping: 2,100 DLH × $ 5.0000/DLH = $10,500
Plating: 600 DLH × $19.1667/DLH = $11,500

Applied Factory Overhead-Stamping 10,500.00

Applied Factory Overhead-Plating 11,500.00
Factory Overhead-Stamping
Factory Overhead-Plating
To Transfer Applied Overhead to Actual Overhead

Factory Overhead-Plating 2,744.42

Factory Overhead-Stamping
Under/OverApplied Overhead
To Transfer Under/Overapplied Overhead

(j) Finsihed Goods Inventory

Work in Process Inventory
Jobs 905 and 1001 Finished

(k) Accounts Receivable

Sales
Narrative

Costs of Goods Sold

Merchandise Inventory
Sold for markup

(l) Cash 55,000.00

Accounts Receivable
Received payment of their accounts

(m) Salaries Expense 43,706.00

Cash
Checks issued for payment of the payroll.
 0.00

0.00

0.00

12,259.00

1,125.00
3,200.00
1,500.00

120.00
21,750.00

0.00

0.00

10,500.00
11,500.00

10,500.00
11,500.00

2,494.42
250.00

0.00

0.00

0.00

55,000.00
43,706.00
 Service Department Expense Distribution
Service Department Expense Distribution Work Sheet
For the Month Ended October 31
Mainte-
Description nance Power Stamping Plating
Direct costs………………………. $ 3,207.70 $ 2,214.10 $ 9,768.40 $ 6,559.80

Maintenance-Distribution: $ 0.0886227 per square foot

Power: 8,820 ft² $ 781.65
Stamping: 19,500 ft² $ 1,728.14
Plating: 7,875 ft² ___________ $ 697.90
$ 2,995.75

Power-Distribution:
Stamping: 50% $ 1,497.88
Plating: 50% ___________ $ 1,497.88
$ 12,994.42 $ 8,755.58
tion
k Sheet

Total
$ 21,750.00

$ 21,750.00
 Material Summary-October 31
Units Unit Cost Total
Material A 220 $ 26 $ 5,720
Material B 620 $ 16 $ 9,920
Material C 380 $ 28 $ 10,640
Factory Supplies $ 3,200
$ 29,480

Finished Goods Summary-October 31

Total
Job $ 1,000

Work In Process Summary-October 31

Total
Job $ 500

Chrome Crafted, Inc.

Statement of Cost of Goods Manufactured
For the Month Ended October 31
Direct Materials:
Inventory, October 1 $ 15,000
Purchases 68,500
Total cost of materials available $ 83,500
Inventory, October 31 28,450
Cost of materials used $ 55,050
Less: Indirect materials used 21,750
Direct Materials used: $ 33,300
Direct Labor 25,500
Applied Factory Overhead: 22,000
Total manufacturing costs $ 80,800
Add: Work in process inventory, Oct 1 3,600
Total $ 84,400
Less: Work in process inventory, Oct 31 25,000
Cost of Goods Manufactured during the month $ 59,400

Chrome Crafted, Inc.

Income Statement
For the Month Ended October 31
Net Sales
Less: Cost of Goods Sold
Finished goods inventory, October 1 $ 8,750
Add cost of goods manufactured 78,700
Goods available for sale $ 87,450
Less: Finished goods inventory, October 31 58,690
Cost of Goods Sold 28,760
Gross Margin on Sales $ (28,760)
Operating Expenses:
Salaries $ 183,000
 Payroll tax expense-salaries 2,685
Miscellaneous selling and administrative expenses 1,500
Depreciation expense-office equipment 175
Total operating expenses $ 187,360
Net Loss $ (216,120)
 Chrome Crafted, Inc.
Balance Sheet
October 31
Assets
Current Assets:
Cash $ -
Accounts Receivable -
Finished Goods 58,690
Work in Process 25,000
Materials 28,450
Prepaid Insurance 4,200
Total Current Assets $ 116,340
Property, Plant, and Equipment
Factory Building $ 64,000
Less: Accumulated Depreciation (22,767) $ 41,233
Machinery and equipment $ 38,000
Less: Accumulated Depreciation (16,633) $ 21,367
Office equipment $ 10,500
Less: Accumulated Depreciation (7,675) $ 2,825
Total Property, Plant, and Equipment $ 65,425
Total Assets $ 181,765
Liabilities
Current Liabilities:
Accounts Payable $ 72,000
FICA Tax Payable 7,384
Federal Unemployment Tax Payable 897
State Unemployment Tax Payable 3,536
Employees Income Tax Payable 10,530
Deferred Credit-Overapplied Factory Overhead -
Total Liabilities $ 94,347
Stockholders' Equity
Capital Stock $ 75,000
Retained Earnings (161,338)
Total Shareholders' Equity $ (86,338)
Total Liabilities and Stockholders' Equity $ 8,009