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:

1.	Cost of direct materials used
	Beginning raw materials inventory	$	41,000
	Plus purchases		189,000
	Raw materials available		230,000
	Less ending raw materials inventory		(34,000	)
	Total raw materials used		196,000
	Less indirect materials used		(11,000	)
	Cost of direct materials used	$	185,000
2.	Cost of direct labor used
	Total factory payroll	$	200,000
	Less indirect labor		(90,000	)
	Cost of direct labor used	$	110,000
3.	Cost of goods manufactured
	Beginning goods in process inventory	$	9,900
	Plus direct materials		185,000
	Plus direct labor		110,000
	Plus overhead applied (55% of DL cost)		60,500
	Total cost of goods in process		365,400
	Less ending goods in process inventory		(18,400	)
	Cost of goods manufactured	$	347,000
4.	Cost of goods sold
	Beginning finished goods inventory	$	50,000
	Plus: Cost of goods manufactured		347,000
	Less ending finished goods inventory		(35,000	)
	Cost of goods sold	$	362,000
5.	Gross profit
	Sales	$	2,000,000
	Cost of goods sold		(362,000	)
	Gross profit	$	1,638,000
6.	Overapplied or underapplied overhead
	Indirect materials	$	11,000
	Indirect labor		90,000
	Other overhead costs		101,500
	Total actual overhead incurred		202,500
	Overhead applied		60,500
	Underapplied overhead	$	142,000