Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 7

Zelda Manufacturing organized in June and recorded the following transactions during June, its first month of operations:
1. Purchased materials costing $800,000.
2. Used direct materials in production costing $485,000.
3. Applied direct labor costs of $500,000 to various jobs.
4. Applied manufacturing overhead at a rate of 510 per direct labor hour. (Direct labor workers earn $20 per hour.)
5. Incurred actual manufacturing overhead exists of $245,000 (credit "Various Accounts"),
6. Transferred completed jobs costing $745,000 to finished goods.
7. Sold completed jobs for $1,000,000 on account. The cost applied to the jobs sold totaled $615,000.
8. Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June 30.
a. Prepare a journal entry for each of the eight transactions listed above.
b. Compute the balance of the Cost of Goods Sold account at June 30.
c. Determine the company s inventory balances at the end of June.