Can you please help with #10? Using a spreadsheet and based on the information p
ID: 2399815 • Letter: C
Question
Can you please help with #10?
Using a spreadsheet and based on the information provided in the next section, complete the following requirements 1. Determine the started and completed units by using the following formula: Started-Ending = Completed and Transferred Out-Beginning Prepare an equivalent units schedule. The schedule should follow the format below; you may add additional information if you would like. (Remember that the schedule is for units of trucks not plastic and wheels.) 2. Whole Units (Actual) Direct Materials- Direct Materials Conversion Equivalent Units Plastic Xxx XxX Wheels Costs Beginning Start/Completed Completed/Transferred Out XXX Ending Total xxX xxX xXX xxX Calculate the total cost and the cost per equivalent unit for the direct materials plastic. Calculate the total cost and the cost per equivalent unit for the direct materials wheels. Calculate the predetermined overhead rate. Determine the total conversion cost by using the predetermined rate and the direct labor rate. Then determine the conversion cost per truck by taking the number out four decimals and then rounding to the nearest cent. Determine the unit cost per truck to the nearest cent. Prepare a Cost of Production report. This report should show all costs transferred into Work-in- Process and the costs transferred to Finished Goods by using the Equivalent Units Schedule. This process uses FIFO costing. Determine the amounts for the following. Show calculations for credit. 3. 4. 5. 6. 7. 8. 9. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Show and calculate an Income Statement f) Gross Profit g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period.Explanation / Answer
Solution 10:
Journal Entries Event Particulars Debit Credit a Raw material inventory - Plastic Dr $7,000.00 Raw material inventory - Wheels Dr $2,080.00 To Cash $9,080.00 (To record purchase of raw material inventory) b Work In process Dr $8,460.00 To Raw material inventory - Plastic $6,500.00 To Raw material inventory - Wheels $1,960.00 (To charge raw material in to production) c Work In Process Dr $2,000.00 To Cash $2,000.00 (To record direct labor cost incurred) d Work In Process Dr $1,300.00 To Manufacturing overhead $1,300.00 (To apply manufacturing overhead on production) e Manufacturing overhead Dr $1,500.00 To Cash $1,500.00 (To record manufacturing overhead cost incurred) f Cost of goods sold Dr $200.00 To Manufacturing overhead $200.00 (Being underapplied overhead charged to COGS) g Accounts receivables Dr $18,850.00 Cost of goods sold Dr $6,674.00 To Sales revenue $18,850.00 To Finished goods inventory $6,674.00 (To record sales revenue and COGS)