Managerial Accounting (ACC 202)
Exam 1
Smith & Co.
Balance Sheet
December 31, 2017
Assets
Cash $15,000
Accounts Receivable 22,000
Prepaid Insurance 3,000
Material Inventory 2,000
WIP inventory 2,900
FG inventory 1,200
Equipment 50,000
(Accum. Dep) (10,000)
Total Assets $86,100
Liabilities & Equity
Accounts Payable $20,000
Wages Payable 3,000
Property Taxes Payable 1,000
Common Stock 40,000
Retained Earnings 22,100
Total Liabilities & Equity $86,100
Instructions:
Open the balances in the general ledger.
Post the entries for job order production costs to the general ledger.
Prepare a statement of cost of goods manufactured and cost of goods sold, an income statement and a balance sheet.
Entries for Job Order Production Costs
Raw Materials Inventory 3,650
Accounts Payable3,650
Acquired materials on credit for factory use.
Work in Process Inventory 1,700
Raw Materials Inventory1,700
To assign costs of direct materials used.
Factory Overhead 650
Raw Materials Inventory650
To record use of indirect materials.
Factory Payroll 5,350
Cash (and other accounts)5,350
To record salaries and wages of factory workers
(including various payroll liabilities)
Work in Process Inventory 4,100
Factory Payroll4,100
To assign cost of direct labor used.
Factory Overhead 1,250
Factory Payroll1,250
To record indirect labor costs as overhead.
Factory Overhead 5,100
Cash (and other accounts)5,100
To record factory overhead costs such as insurance,
utilities, rent, and depreciation.
Work in Process Inventory 5,740
Factory Overhead5,740
To apply overhead at 140% of direct labor.
Finished Goods Inventory 8,980
Work in Process Inventory8,980
To record completion of Jobs B15, B 16, and B17.
Cash 10,600
Cost of Goods Sold 5,560
Finished Goods Inventory 5,560
To record sale of Jobs B15 and B16.
1 What is the ending cash balance?
2 What is the ending accounts receivable balance?
3What is the ending prepaid insurance balance?
4 What is the ending materials inventory balance?
5What is the ending work in process balance?
6 What is the ending finished goods balance?
7 What is the ending equipment balance net of accumulated depreciation?
8 What is the ending accounts payable balance?
9 What is the ending retained earnings balance?
10 What is the adjustment to factory overhead?
11What is cost of goods sold before the adjustment?
12 What is cost of goods sold after the adjustment?
13What is the cost of goods manufactured?
14 What is net income?
15 What is total assets? A
16What represents the correct order of the job order costing process?
17 Which account keeps track of the costs on the assembly line?
18 What are prime costs?
19What are conversion costs?
20What is the formula for cost of goods manufactured?
| Cash | ||||
| Date | Debit | Credit | Balance | |
| Beginning | 15000 | |||
| 5350 | 9650 | |||
| 5100 | 4550 | |||
| 10600 | 15150 | Debit | ||
| Accounts receivable | ||||
| Date | Debit | Credit | Balance | |
| Beginning | 22000 | Debit | ||
| Prepaid insurance | ||||
| Date | Debit | Credit | Balance | |
| Beginning | 3000 | |||
| Material inventory | ||||
| Date | Debit | Credit | Balance | |
| Beginning | 2000 | |||
| 3650 | 5650 | |||
| 1700 | 3950 | |||
| 650 | 3300 | |||
| Work in progress inventory | ||||
| Date | Debit | Credit | Balance | |
| Beginning | 2900 | |||
| 1700 | 4600 | |||
| 4100 | 8700 | |||
| 5740 | 14440 | |||
| 8980 | 5460 | |||
| Finished goods inventory | ||||
| Date | Debit | Credit | Balance | |
| Beginning | 1200 | |||
| 8980 | 10180 | |||
| 5560 | 4620 | |||
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