On April 1, Sangvikar Company had the following balances in its inventory accounts:

Materials Inventory $12,730
Work-in-Process Inventory 21,340
Finished Goods Inventory 8,700

Work-in-process inventory is made up of three jobs with the following costs:

Job 114 Job 115 Job 116
Direct materials $2,411 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,170 1,014 2,795

Materials purchased on account, $30,000. Materials requisitioned: Job 114, $16,500; Job 115, $12,000; and Job 116, $5,000. Job tickets were collected and summarized: Job 114, 150 hours at $14 per hour; Job 115, 220 hours at $18 per hour; and Job 116, 80 hours at $18 per hour. Overhead is applied on the basis of direct labor cost. Actual overhead was $4,807. Job 115 was completed and transferred to the finished goods warehouse. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.

Required:
a. Prepare journal entries for the April transactions.
b. Calculate the ending balances of each of the inventory accounts as of April 30. Post the entries to the T-accounts in the same order in which they were journalized.

Question

Business

Answered

On April 1, Sangvikar Company had the following balances in its inventory accounts:

Materials Inventory $12,730
Work-in-Process Inventory 21,340
Finished Goods Inventory 8,700

Work-in-process inventory is made up of three jobs with the following costs:

Job 114 Job 115 Job 116
Direct materials $2,411 $2,640 $3,650
Direct labor 1,800 1,560 4,300
Applied overhead 1,170 1,014 2,795

Materials purchased on account, $30,000. Materials requisitioned: Job 114, $16,500; Job 115, $12,000; and Job 116, $5,000. Job tickets were collected and summarized: Job 114, 150 hours at $14 per hour; Job 115, 220 hours at $18 per hour; and Job 116, 80 hours at $18 per hour. Overhead is applied on the basis of direct labor cost. Actual overhead was $4,807. Job 115 was completed and transferred to the finished goods warehouse. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.

Required:
a. Prepare journal entries for the April transactions.
b. Calculate the ending balances of each of the inventory accounts as of April 30. Post the entries to the T-accounts in the same order in which they were journalized.

Answer :

Go Teaching: Other Questions

Two Parallel Plates Of Area 5.68*10^-4 M^2 Have Equal And Opposite Charges Of 8.38*10^-11 C Placed On Them. What Is The Electric Field Between The Plates

11. Explain How To Evaluate The Expression 9 +(45 X 2) = 10.

DNA - TAC CAT GGA ATT ACT RNA - ? Amino Acids - ? PLZ HELP

PLEASE PLEASE HELP WITH WILL GIVE BRAINLIST PLEASE!!!! Mars Is Coming Up In The News A Lot These Days. Write A Short Story About A Journey To Mars. How Long Wil

A Laboratory Experiment Produces A Double-slit Interference Pattern On A Screen. The Point On The Screen Marked With A White Dot (on A DARK Fringe This Time) Is

Simone Is The Only Provider Of Pumpkins For Three Cities. Because She Has Her Own Large Garden, The Marginal Cost To Produce An Additional Pumpkin Is $0. As She

1. A Family Is Typically A Group Of People Related By ____________, Or A Blood Relationship. A.kinship B.adoption C.nationality D.ethnicity 2. After Paying Expe

Why Does Sugar Dissolve More Quickly In A Warm Cup Of Coffee Than In A Glass Of Iced Tea ?

A Piece Of DNA With Instructions For One Trait..?

When Viewing A Piece Of Art That Is Behind Glass, One Often Is Affected By The Light That Is Reflected Off The Front Of The Glass (called Glare), Which Can Make

Which Statement Best Describes The Effect Of Surrealist Art And Literature On Its Audience? They Both Encourage Readers To Question What Is Real By Taking Them

HELP ME WITH THIS DUE IN A HOUR!! WILL GIVE BRAINLIST

Anthougogo Anthougogo · Answer 1

Answer:

Sangvikar Company

a. Journal Entries for The April transactions:

Debit Raw materials $30,000

Credit Accounts Payable $30,000

To record the purchase of raw materials.

Debit WIP:

Job 114, $16,500

Job 115, $12,000

Job 116, $5,000

Credit Raw materials $33,500

To record the transfer of raw materials to production.

Debit WIP:

Job 114 $2,100

Job 115 $3,950

Job 116 $1,440

Credit Direct labor costs $7,490

To record the direct labor costs to WIP.

Debit WIP:

Job 114 $1,348

Job 115 $2,535

Job 116 $934

Credit Overhead $4,807

To record the overhead applied to WIP.

Debit Finished Goods Inventory $23,699

Credit WIP: Job 115 $23,699

To record the transfer of Job 115 to Finished Goods.

Debit Cost of Goods Sold $23,699

Credit Finished Goods Inventory $23,699

To record the cost of goods sold.

Debit Accounts Receivable $29,624

Credit Sales Revenue $29,624

To record the sale of Job 115 on credit.

b. Ending balances of Inventory Accounts:

Raw materials = $9,230

WIP:

Job 114 = $25,329

Job 116 = $18,119

Total = $43,448

Finished Goods = $8,700

c. T-Accounts:

Materials Inventory

Account Titles Debit Credit

Beginning balance $12,730

Accounts Payable 30,000

WIP:

Job 114 $16,500

Job 115 12,000

Job 116 5,000

Balance $9,230

Accounts Payable

Account Titles Debit Credit

Raw materials $30,000

Work-in-Process Inventory - Job 114

Account Titles Debit Credit

Beginning balance $5,381

Raw materials 16,500

Direct labor cost 2,100

Overhead applied 1,348

Balance $25,329

Work-in-Process Inventory - Job 115

Account Titles Debit Credit

Beginning balance $5,214

Raw materials 12,000

Direct labor cost 3,950

Overhead applied 2,535

Finished Goods Inventory $23,699

Work-in-Process Inventory - Job 116

Account Titles Debit Credit

Beginning balance $10,745

Raw materials 5,000

Direct labor cost 1,440

Overhead applied 934

Balance $18,119

Direct Labor Cost

Account Titles Debit Credit

WIP:

Job 114 $2,100

Job 115 3,950

Job 116 1,440

Overhead

Account Titles Debit Credit

WIP:

Job 114 $1,348

Job 115 2,535

Job 116 934

Finished Goods Inventory

Account Titles Debit Credit

Beginning balance $8,700

WiP: Job 115 $23,699

Cost of Goods Sold $23,699

Cost of Goods Sold

Account Titles Debit Credit

Finished Goods $23,699

Sales Revenue

Account Titles Debit Credit

Accounts Receivable $29,624

Accounts Receivable

Account Titles Debit Credit

Sales Revenue $29,624

Explanation:

a) Data and Calculations:

Beginning balances:

Materials Inventory $12,730

Work-in-Process Inventory 21,340

Finished Goods Inventory 8,700

Work-in-Process Inventory costs:

Job 114 Job 115 Job 116

Direct materials $2,411 $2,640 $3,650

Direct labor 1,800 1,560 4,300

Applied overhead 1,170 1,014 2,795

Total $5,381 $5,214 $10,745

Analysis of April Transactions:

Raw materials $30,000 Accounts Payable $30,000

WIP: Job 114, $16,500; Job 115, $12,000; and Job 116, $5,000 and Raw materials $33,500

WIP: Job 114 $2,100 Job 115 $3,950, Job 116 $1,440 Direct labor costs $7,490

WIP: Job 114 $1,348 Job 115 $2,535 Job 116 $934 Overhead $4,807

Job tickets were collected and summarized (Direct labor costs):

Jobs DLH DLH Costs Overhead applied

Job 114, 150 hours at $14/hour = $2,100 $1,348 ($2,100/$7,490 *$4,807)

Job 115, 220 hours at $18/hour = $3,950 2,535 ($3,950/$7,490 *$4,807)

Job 116, 80 hours at $18/hour = $1,440 924 ($1,440/$7,490 *$4,807)

Total = 450 hours $7,490 $4,807

Actual Overhead = $4,807

Total direct labor costs = $7,490

Overhead rate = $0.64

Sales Revenue = $29,624 ($23,699 * 125%)