- COMPUTE DIRECT LABOR BASED ON THE FOLLOWING: FACTORY
SUPERVISOR=$1,000
ASSEMBLY LINE WORKERS=$2,000 AND
OFFICE SALARIES=$5,000
- COMPUTE DIRECT MATERIALS USED BASED ON THE FOLLOWING:
BEG RM=$1,000
BEG WIP=$2,000
BEG FG=$3,000
END RM=$4,000
END WIP=$5,000
END FG=$6,000
RM PURCHASED=$7,000
- COMPUTE COST OF GOODS MANUFACTURED BASED ON THE FOLLOWING:
DL=8,000
BEG WIP=2,000
BEG FG=3,000
MO=9,000
END WIP=5,000
END FG=6,000
DM USED =7,000
- COMPUTE MANUFACTURING OVERHEAD:
FACTORY RENT=1,000
FACTORY UTILITIES=2,000
OFFICE DEPRECIATION=4,000
- PREPARE THE JOURNAL ENTRY TO RECORD 5,000 RM PURCHASED ON
ACCOUNT
- BASED ON 8 ABOVE, 3,000 OF RM WAS REQUESTED FOR PRODUCTION,
2,000 FOR SPECIFIC JOBS AND 1,000 FOR GENERAL USE
- PREPARE THE JOURNAL ENTRY TO RECORD $6,000 FACTORY PAYROLL.
5,000 PAID TO EMPLOYEES AND 1,000 TO TAXES PAYABLE.
- BASED ON 10. ABOVE, 4,000 IS FOR ASSEMBLY LINE WORKERS AND
2,000 IS FOR THE FACTORY SUPERVISOR.
- PREPARE THE JOURNAL ENTRY TO RECORD THE DECLARATION OF A 10%
STOCK DIVIDEND. THERE ARE 100,000 COMMON SHARES OUTSTANDING, PAR
VALUE OF THE STOCK IS $3/SH AND THE SELLING PRICE OF THE STOCK IS
$105/SH
- ABC COMPANY PURCHASED 1,000 SHARES OF ITS COMMON STOCK FOR ITS
TREASURY. PAR VALUE IS $3/SH AND THE SELLING PRICE OF THE STOCK IS
$105/SH.
- PREPARE THE JOURNAL ENTRY TO RECORD ABC CORPORATION CLOSING OUT
ITS NET INCOME OF $300,000
- ABC COMPANY PAID $1,000 TO ITS ATTORNEY TO INCORPORATE ITS
BUSINESS. PREPARE THE JOURNAL ENTRY.
- PREPARE THE JOURNAL ENTRY TO RECORD THE ISSUANCE OF $300,000
BONDS FOR 103.