Sunday 4 November 2012

Following are the transactions of a new company called Pose for Pics.

Following are the transactions of a new company called Pose for Pics.

Aug. 1   Kasey Madison, the owner, invested $6,000 cash and $25,800 of photography equipment in the company in exchange for common stock.
2  
The company paid $3,900 cash for an insurance policy covering the next 24 months.
5   The company purchased office supplies for $1,140 cash.
20   The company received $3,700 cash in photography fees earned.
31   The company paid $874 cash for August utilities.

Prepare general journal entries for the above transactions. (Omit the "$" sign in your response.)

Date General Journal     Debit    Credit
Aug. 1       Cash  
    Photography equipment  
         Common stock    
       
2       Prepaid insurance  
         Cash    
       
5       Office supplies  
         Cash    
       
20       Cash  
         Photography fees earned    
       
31       Utilities expense  
         Cash    

Given the following selected account balances of Randa Company.

Given the following selected account balances of Randa Company.
 
     
  Sales $ 1,357,000  
  Raw materials inventory, Dec. 31, 2010   41,000  
  Goods in process inventory, Dec. 31, 2010   55,500  
  Finished goods inventory, Dec. 31, 2010   69,100  
  Raw materials purchases   172,800  
  Direct labor   238,000  
  Factory computer supplies used   19,600  
  Indirect labor   41,000  
  Repairs—Factory equipment   7,250  
  Rent cost of factory building   51,000  
  Advertising expense   83,000  
  General and administrative expenses   138,000  
  Raw materials inventory, Dec. 31, 2011   46,800  
  Goods in process inventory, Dec. 31, 2011   47,100  
  Finished goods inventory, Dec. 31, 2011   66,500  

 
Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.)
 
RANDA COMPANY
Manufacturing Statement
For Year Ended December 31, 2011
  Direct materials    
     Raw materials inventory, December 31, 2010 $     
     Raw materials purchases     
 
 
     Raw materials available for use     
     Less: Raw materials inventory, December 31, 2011     
 
 
     Direct materials used   $   
  Direct labor     
  Factory overhead    
     Factory computer supplies used     
     Indirect labor     
     Repairs-factory equipment     
     Rent cost of factory building     
 
 
     Total factory overhead costs     
   
  Total manufacturing costs     
  Add: Goods in process inventory, December 31, 2010     
   
  Total cost of goods in process     
  Less: Goods in process inventory, December 31, 2011     
   
  Cost of goods manufactured   $   
   

Following are the selected account balances of Randa Company:

Following are the selected account balances of Randa Company:
 
  Sales $ 1,455,000  
  Raw materials inventory, Dec. 31, 2010 39,000  
  Goods in process inventory, Dec. 31, 2010 59,500  
  Finished goods inventory, Dec. 31, 2010 63,800  
  Raw materials purchases 189,000  
  Direct labor 223,000  
  Factory computer supplies used 23,700  
  Indirect labor 53,000  
  Repairs—Factory equipment 7,250  
  Rent cost of factory building 50,000  
  Advertising expense 95,000  
  General and administrative expenses 137,000  
  Raw materials inventory, Dec. 31, 2011 41,500  
  Goods in process inventory, Dec. 31, 2011 38,100  
  Finished goods inventory, Dec. 31, 2011 69,800  


Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $564,850. (Input all amounts as positive values. Omit the "$" sign in your response.)

RANDA COMPANY
Income Statement
For Year Ended December 31, 2011
  Sales $   
  Cost of goods sold
    Finished goods inventory, December 31, 2010  $   
    Cost of goods manufactured   

    Cost of goods available for sale   
    Less: Finished goods inventory, December 31, 2011   

    Cost of goods sold   

  Gross profit   
  Operating expenses
    Advertising expenses   
    General and administrative expenses   

    Total operating expenses   

  Operating income $   

The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.

The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.

  April 30 May 31  
  Inventories          
     Raw materials $ 41,000   $ 34,000  
     Goods in process   9,900     18,400  
     Finished goods   50,000     35,000  
  Activities and information for May          
     Raw materials purchases (paid with cash)       189,000  
     Factory payroll (paid with cash)       200,000  
     Factory overhead          
        Indirect materials       11,000  
        Indirect labor       90,000  
        Other overhead costs       101,500  
     Sales (received in cash)       2,000,000  
     Predetermined overhead rate based on direct labor cost       55 %


Compute the following amounts for the month of May. (Input all amounts as positive values. Omit the "$" sign in your response.)

     
1. Cost of direct materials used. $  
2. Cost of direct labor used. $  
3. Cost of goods manufactured. $  
4. Cost of goods sold.* $  
5. Gross profit. $  
6. Underapplied overhead $  

*Do not consider any underapplied or overapplied overhead.
rev: 03-04-11


Explanation: