Fisher Company Solutions

Published: 2021-09-06 14:15:34
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FISHER COMPANY SOLUTIONS 1.Journal entries:(a)Raw Materials         60,000        Accounts Payable        60,000(b)Work in Process        50,000Manufacturing Overhead        2,000          Raw Materials         52,000(c)Work in Process         60,000Manufacturing Overhead        15,000          Salaries and Wages Payable        75,000(d)Manufacturing Overhead         40,000        Cash         40,000(e)Manufacturing Overhead         13,000          Property Taxes Payable         13,000(f)Manufacturing Overhead         7,000          Prepaid Insurance         7,000(g)Manufacturing Overhead         18,000          Accumulated Depreciation         18,000(h)Work in Process         90,000          Manufacturing Overhead         90,000*Predetermined overhead rate = Budgeted manufacturing overhead = 1,200,000                                                             Budgeted machine hours                 200,000                                                                                                                  = $6/MH*Applied manufacturing overhead = 15,000 machine hours × $6 per MH.(i)Salaries Expense         30,000                Salaries and Wages Payable        30,000(j)Depreciation Expense         7,000        Accumulated Depreciation         7,000(k)Advertising Expense         42,000        Cash …..         42,000(l)Other Selling and Administrative Expense         8,000        Cash….         8,000(m)Finished Goods         158,000        Work in Process         158,000(n)Accounts Receivable         225,000        Sales         225,000Cost of Goods Sold         118,500        Finished Goods         118,5002.T-accounts and posting of journal entries:Accounts ReceivableAccounts PayableBalXXXXXXBal(n)  225,00060,000(a)Prepaid InsuranceRaw MaterialsBal.XXX7,000(f)Bal.7,00052,000(b)(a)60,000Bal.15,000Salaries and Wages PayableSalesBal.XXX225,000(n)75,000(c)30,000(i)Work in ProcessManufacturing OverheadBal.30,000158,000(m)(b)2,00090,000(h)(b)50,000(c)15,000(c)60,000(d)40,000(h)90,000(e)13,000Bal.72,000(f)7,000(g)18,000Bal.5,000Property Taxes PayableCost of Goods SoldXXXBal.(n)118,50013,000(e)Finished GoodsDepreciation ExpenseBal.10,000(j)7,000(m)158,000118,500(n)Bal.49,500Accumulated DepreciationAdvertising ExpenseXXXBal.(k)42,00018,000(g)7,000(j)Other Selling & Admin ExpenseSalaries Expense(l)8,000(i)30,000CashBalXXX40,000             (d)  42,000(k)  8,000(l)3.(a)Calculation of actual overhead:Indirect material         $    2,000Indirect Labor          15,000Depreciation: factory building and equipment        18,000Rent: factory equipment         16,000Utilities        21,000Property taxes        13,000Insurance          7,000Miscellaneous Factory Costs         3,000Total actual overhead        $95,000(b)Underapplied overhead=[pic 1]=$95,000 – $90,000*=$5,000 underapplied*$90,000 = 15,000 direct-labor hours × $6 per hour.(c)Cost of Goods Sold         5,000                Manufacturing Overhead        5,0004.FISHER COMPANYSchedule of Cost of Goods ManufacturedFor the Month of APRILDirect material:        Raw-material inventory, April 1        $7,000        Add: Purchases of raw material           60,000        Raw material available for use        $67,000        Deduct: Raw-material inventory, April 30          15,000        Raw material used        $ 52,000       Less: Indirect materials included in        manufacturing overhead ........................................2,000$50,000Direct labor        60,000  Manufacturing overhead:        Indirect material         $    2,000       Indirect Labor          15,000       Depreciation: factory building and equipment        18,000       Rent: factory equipment         16,000       Utilities        21,000       Property taxes        13,000       Insurance          7,000       Miscellaneous Factory Costs         3,000             Total actual manufacturing overhead .............95,000             Less: Underapplied overhead .........................(5,000)       Overhead applied to work in process ...................90,000Total manufacturing costs        $ 200,000  Add: Work-in-process inventory, April 1          30,000  Subtotal        $230,000  Deduct: Work-in-process inventory, April 30         72,000  Cost of goods manufactured        $  158,000†

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