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Edison Company manufactures wool blankets and...

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Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories. Beginning Inventory Ending Inventory Raw materials inventory $ 28,000 $ 25,500 Goods in process inventory 220,750 252,000 Finished goods inventory 319,000 277,000 -------------------------------------------------------------------------------- The following additional information describes the company's production activities for May. Raw materials purchases (on credit) $ 135,000 Factory payroll cost (paid in cash) 791,500 Other overhead cost (Other Accounts credited) 43,000 Materials used Direct $ 93,500 Indirect 31,000 Labor used Direct $ 352,000 Indirect 439,500 Overhead rate as a percent of direct labor 110 % Sales (on credit) $ 1,500,000 -------------------------------------------------------------------------------- 1. value: 10 points Required: 1(a) Compute the cost of products transferred from production to finished goods. (Omit the "$" sign in your response.) Cost of products transferred $ 1(b) Compute the cost of goods sold. (Omit the "$" sign in your response.) Cost of goods sold $ check my workeBook Links (4)references 2. value: 10 points 2(a) Prepare journal entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Accounts payableFactory overheadCost of goods soldFactory payrollFinished goods inventoryRaw materials inventorySalesAccounts receivable (Click to select)Raw materials inventoryFinished goods inventorySalesAccounts receivableFactory payrollCost of goods soldAccounts payableFactory overhead -------------------------------------------------------------------------------- 2(b) Prepare journal entry dated May 31 to record the direct materials usage. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Raw materials inventoryOther accountsFactory overheadCashGoods in process inventoryFinished goods inventoryAccounts receivableFactory payroll (Click to select)CashOther accountsFactory overheadGoods in process inventoryFinished goods inventoryAccounts receivableRaw materials inventoryFactory payroll -------------------------------------------------------------------------------- 2(c) Prepare journal entry dated May 31 to record the indirect materials usage. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Accounts payableFinished goods inventoryGoods in process inventoryRaw materials inventoryFactory overheadCost of goods soldCashFactory payroll (Click to select)Goods in process inventoryRaw materials inventoryCost of goods soldFactory payrollFactory overheadFinished goods inventoryAccounts payableCash -------------------------------------------------------------------------------- 2(d) Prepare journal entry dated May 31 to record the payroll costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Factory payrollSalesFactory overheadGoods in process inventoryOther accountsRaw materials inventoryAccounts receivableCash (Click to select)Accounts receivableOther accountsGoods in process inventorySalesCashRaw materials inventoryFactory payrollFactory overhead -------------------------------------------------------------------------------- 2(e) Prepare journal entry dated May 31 to record the direct labor costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Accounts receivableOther accountsFactory overheadSalesCost of goods soldFinished goods inventoryFactory payrollGoods in process inventory (Click to select)SalesGoods in process inventoryCost of goods soldFactory payrollFactory overheadFinished goods inventoryAccounts receivableOther accounts -------------------------------------------------------------------------------- 2(f) Prepare journal entry dated May 31 to record the indirect labor costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Cost of goods soldOther accountsFinished goods inventoryGoods in process inventoryFactory overheadFactory payrollAccounts receivableSales (Click to select)SalesFinished goods inventoryOther accountsAccounts receivableCost of goods soldGoods in process inventoryFactory overheadFactory payroll -------------------------------------------------------------------------------- 2(g) Prepare journal entry dated May 31 to record the other overhead costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Finished goods inventorySalesRaw materials inventoryAccounts receivableFactory overheadCost of goods soldGoods in process inventoryOther accounts (Click to select)Accounts receivableGoods in process inventoryCost of goods soldFinished goods inventoryOther accountsRaw materials inventoryFactory overheadSales -------------------------------------------------------------------------------- 2(h) Prepare journal entry dated May 31 to record the overhead applied. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Accounts receivableFactory overheadGoods in process inventoryCost of goods soldAccounts payableRaw materials inventoryFinished goods inventorySales (Click to select)Goods in process inventorySalesAccounts receivableRaw materials inventoryAccounts payableFactory overheadFinished goods inventoryCost of goods sold -------------------------------------------------------------------------------- 2(i) Prepare journal entry dated May 31 to record the goods transferred from production to finished goods. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Goods in process inventoryCost of goods soldFactory overheadAccounts payableRaw materials inventoryFinished goods inventorySalesAccounts receivable (Click to select)Accounts receivableGoods in process inventoryFactory overheadSalesCost of goods soldRaw materials inventoryAccounts payableFinished goods inventory -------------------------------------------------------------------------------- 2(j) Prepare journal entry dated May 31 to record the sale of finished goods. (Omit the "$" sign in your response.) Date General Journal Debit Credit May 31 (Click to select)Factory overheadRaw materials inventoryAccounts receivableCashAccounts payableFactory payrollGoods in process inventorySales (Click to select)SalesAccounts receivableFactory overheadFactory payrollGoods in process inventoryAccounts payableCashRaw materials inventory (Click to select)Cost of goods soldFactory overheadCashAccounts payableRaw materials inventoryFactory payrollFinished goods inventoryGoods in process inventory (Click to select)Finished goods inventoryAccounts payableGoods in process inventoryCashFactory payrollFactory overheadRaw materials inventoryCost of goods sold

 

Paper#6214 | Written in 18-Jul-2015

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