50.1K

Verified Solution

Link Copied!

Farina Bays computer system generated the following trial balance on December 31, 2013. The companys manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts.

		Debit			Credit
Cash	$	54,000
Accounts receivable		48,000
Raw materials inventory		29,000
Goods in process inventory		0
Finished goods inventory		12,000
Prepaid rent		4,000
Accounts payable				$	10,700
Notes payable					13,700
Common stock					40,000
Retained earnings					85,000
Sales					201,600
Cost of goods sold		107,000
Factory payroll		18,000
Factory overhead		32,000
Operating expenses		47,000
Totals	$	351,000		$	351,000

After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date.

Materials requisition 21-3010:		$	4,400	direct materials to Job 402
Materials requisition 21-3011:		$	7,500	direct materials to Job 404
Materials requisition 21-3012:		$	2,300	indirect materials
Labor time ticket 6052:		$	7,000	direct labor to Job 402
Labor time ticket 6053:		$	8,000	direct labor to Job 404
Labor time ticket 6054:		$	3,000	indirect labor

Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% of direct labor cost.

rev: 11_20_2013_QC_41040

References

Section BreakProblem 19-2A Source documents, journal entries, overhead, and financial reports LO P1, P2, P3, P4

31.

value: 5.00 points

Required information

Problem 19-2A Part 1

a.	Direct materials costs to Goods in Process Inventory.
b.	Direct labor costs to Goods in Process Inventory.
c.	Overhead costs to Goods in Process Inventory.
d.	Indirect materials costs to the Factory Overhead account.
e.	Indirect labor costs to the Factory Overhead account.

Required:
1.	Prepare journal entries to assign the above costs.

32.

value: 4.00 points

Required information

Problem 19-2A Part 2

2.1	Determine the revised balance of the Factory Overhead account after making the entries in part 1 using T-accounts. Determine whether there is any under- or overapplied overhead for the year.

2.2	Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold, assuming the amount is not material.

33.

value: 4.00 points

Required information

Problem 19-2A Part 3

3.	Prepare a revised trial balance.

34.

value: 4.00 points

Required information

Problem 19-2A Part 4

4.1	Prepare an income statement for year 2013.

4.2	Prepare a balance sheet as of December 31, 2013.

Answer & Explanation Solved by verified expert

See Answer