Below is the example of how the project should look. Above are the two companies that I originally research for Project 1. Refer to Project_Part 2.xlsx to view the complete project. Then do the following:
Howie Stars produces starts for elementary teachers to reward
their students. Howie Stars' trial balance on June 1 follows: |
HOWIE STARS
Trial Balance
June 1, 2012 |
Balance |
Account Title |
Debit |
Credit |
Cash |
$14,000 |
Accounts receivable |
155,000 |
Inventories: |
Materials |
5,700 |
Work in process |
39,400 |
Finished goods |
20,400 |
Plant assets |
200,000 |
Accumulated depreciation |
$72,000 |
Accounts payable |
127,000 |
Wages payable |
1,700 |
Common stock |
142,000 |
Retained earnings |
91,800 |
Sales revenue |
— |
Cost of goods sold |
— |
Manufacturing overhead |
— |
Marketing and general expenses |
— |
Total |
$434,500 |
434,500 |
June 1 balances in the subsidiary ledgers were as follows: |
– Materials subledger: Paper, $4,700; indirect
materials, $1,000 |
– Work in process subledger: Job 120, $39,400; $0 for Job
121 |
– Finished goods subledger: Large Stars, $9,400; Small Stars,
$11,000 |
June transactions are summarized as follows: |
a. Collections on account, $152,000. |
b. Marketing and general expenses incurred and paid, $28,000. |
c. Payments on account, $36,000. |
d. Materials purchases on credit: Paper, $22,900; indirect
materials, $3,800. |
e. Materials used in
production (requisitioned):
– Job 120: paper , $850
– Job 121: paper, $7,650
– Indirect materials,
$1,000 |
f. Wages incurred and
assigned during June, $35,000. Labor time records for the month: Job 120,
$3,500; Job 121, $16,600; indirect labor, $14,900. |
g. Wages paid in June include the balance in the Wages payable
account at May 31 and $32,200 of wages incurred during June. |
h. Depreciation on plant and equipment, $2,600. |
i. Manufacturing overhead was allocated at the predetermined
rate of 50% of direct labor cost. |
j. Jobs completed during the month: Job 120, 300,000 Large
Stars at total cost of $45,500. |
k. Credit sales on account: all of Job 120 for $111,000. |
l. Closed the Manufacturing overhead account to Cost of goods
sold. |
Requirements: |
1. Journalize the transactions for the company. Howie uses a
perpetual inventory system. |
2. Open T-accounts
for the general ledger, the Materials ledger, the Work in process ledger, and
the Finished goods ledger. Insert each account balance as given, and use the
reference Bal. Post the journal entries to the T-accounts using the
transaction letters as a reference. |
3. Prepare a trial balance at June 30, 2012. |
4. Use the Work in process inventory T-account to prepare a
schedule of cost of goods manufactured for the month of June. |
5. Prepare an income statement for the month of June. |
Prepare journal entries for the transactions
Open T-accounts for the general ledger
Post the journal entries to the accounts
You will then prepare a trial balance for the end of the month. Using the work-in-process T-account, you will prepare a schedule for cost of goods sold and manufactured for the month.
You will then prepare an income statement for the month and post any corrections that may be needed for under/over allocated manufacturing overhead.
Submission Requirements:
Complete the required tasks in an MS Excel worksheet |