Please fill in all of the boxes outlined in yellow! Thank you so much! Farina Ba
ID: 2485280 • Letter: P
Question
Please fill in all of the boxes outlined in yellow! Thank you so much!
Farina Bay's computer system generated the following trial balance on December 31, 2013. The company's manager knows something is wrong with the trial balance because it does not show any balance for Goods in Process Inventory but does show balances for the Factory Payroll and Factory Overhead accounts. Debit Credit Cash Accounts receivable Raw materials inventory Goods in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings Sales Cost of goods sold Factory payroll Factory overhead Operating expenses $ 49,000 43,000 26,500 0 15,000 5,000 $ 9,600 12,600 50,000 88,000 187,300 113,000 19,000 27,000 50,000 Totals $347,500 $347500 After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date Materials requisition 21-3010: 4,800 direct materials to Job 402 Materials requisition 21-3011: 7,900 direct materials to Job 404 Materials requisition 21-3012: 2,300 indirect materials Labor time ticket 6052: Labor time ticket 6053: Labor time ticket 6054: $ 3,000 direct labor to Job 402 $12,000 direct labor to Job 404 $4,000 indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% of direct labor cost.Explanation / Answer
Farina Bay All Amounts in $ 1. Journal Entries Allocation of Costs for Jobs 402 and 404 and other entries Goods in Process Inventory A/c 12700 To Raw Materials Inventory A/c 12700 Goods in Process Inventory A/c 15000 To Factory Payroll A/c 15000 Goods in Process Inventory A/c 22500 To Factory Overhead A/c 22500 Factory Overhead A/c 6300 To Raw Materials Inventory A/c 2300 To Factory Payroll A/c 4000 2-1. Factory Overheads Debit in Trial Balance = 6,300 + 27,000 = 33,300 Factory Overheads Allocated = 22,500 Factory Overheads Over-allocated = 33,300 -22,500 = 10,800 2-2. Cost of Goods Sold A/c 10800 To Factory Overhead A/c 10800 3. Farina Bay Revised Trial Balance as on December 31, 2013 Debit Credit Cash 49000 Accounts Receivable 43000 Raw Materials Inventory 11500 Goods in Process Inventory 50200 Finished Goods Inventory 15000 Prepaid Rent 5000 Accounts Payable 9600 Notes Payable 12600 Common Stock 50000 Retained Earnings 88000 Sales 187300 Cost of Goods Sold 123800 Operating Expenses 50000 347500 347500