College Accounting: Week 7 Homework (E27-2A, P27-6A)

College Accounting
Week 7 Homework
E27-2A Schedule of Cost of Goods Manufactured

Prepare a schedule of cost of goods manufactured for Tomas Company for the year ended June 30, 20-2. Information to prepare the schedule is as follows: Work in process, July 1, 20-1 6,400 Materials inventory, July 1, 20-1 4,875 Materials purchases 68,950 Direct labor 140,300 Actual factory overhead 85,225 Work in process, June 30, 20-2 7,700 Materials inventory, June 30, 20-2 6,950 Indirect materials charged to production 3,600 P 27-6A Work sheet, adjusting entries, and financial statements Herrera Company had the following trial balance columns on its work sheet. Herrera Company Trail Balance December 31, 20— Account Title Debit Balance Credit Balance Cash 30,300.00 Government Notes 5,000.00 Interest Receivable Accounts Receivable 34,000.00 Allowance for Bad Debts 530.00 Finished Goods Inventory 24,000.00 Work in Process Inventory 9,000.00 Materials Inventory 8,500.00 Office-Supplies 3,100.00 Factory Supplies 3,800.00 Land 100,000.00 Factory Building 120,000.00 Accumulated Depreciation—Factory Building 10,000.00 Factory Equipment 40,000.00 Accumulated Depreciation—Factory Equipment 5,000.00 Interest Payable Accounts Payable 13,800.00 Income Tax Payable Bonds Payable 80,000.00 Capital Stock 50,000.00 Paid-In Capital in Excess of Par 30,000.00 Retained Earnings 92,400.00 Cash Dividends 30,000.00 Sales 405,100.00 Interest Revenue 300.00 Factory Overhead 78,630.00 Cost of Goods Sold 190,700.00 Wages Expense 70,000.00 Office Supplies Expense Bad Debt Expense Utilities Expense---Office 4,400.00 Interest Expense 7,000.00 Income Tax Expense 18,000.00 776,430.00 776,430.00 Data for adjusting the accounts are as follows: a. Factory overhead to be applied to work in process ending inventory $3,100 b. Interest receivable $75 c. Interest payable 600 d. Estimate of uncollectible accounts based on an aging of accounts receivable 2,930 e. Office supplies consumed 2,900 f. Factory supplies consumed 3,300 g. Factory building depreciation 5,000 h. Factory equipment depreciation 4,000 i. Over applied factory 1,470 j. Provision for corporate income taxes 6,100 k. Physical counts of the inventories agreed with the amounts in the books. Additional information needed to prepare the financial statements is as follows: Beginning inventories: Finished goods January 1 $18,000 Work in process, January 1 7,300 Materials inventory, January 1 9,500 Materials purchases for the year 51,500 Direct labor 60,000 Actual factory overhead 90,930 Indirect materials charged to production 3,400

Required:
1. Prepare a work sheet
2. Prepare the following financial statements and schedule:
a. Income statement b. Schedule of cost of goods manufactured
c. Retained earnings statement
d. Balance sheet
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