Exam 4: Accounting Entries for a Job Costing System

A journal entry debiting Work in Progress would normally NOT be accompanied by a credit to

Assume the following data for Gross, Inc., for February: Beginning finished goods inventory £60,000 Beginning work-in-prgress inventory 40,000 Ending work-in-progress inventory 80,000 Ending finished goods inventory 50,000 Actual factory overhead costs 200,000 Direct materials used 160,000 Direct labour 100,000 What is the cost of goods manufactured for February?

Refer to Figure 4-2. The journal entry to record materials purchased would include a

Refer to Figure 4-3. Which of the following would NOT be an entry under the backflush system, assuming the second trigger point is the completion of goods? A) Materials and In Frogress 40,000 Accounts Payable 40,000 B) Work in Process 40,000 Materials 40,000 C) Conversion Cost Control 46,000 Payroll 6,000 Accounts Payable 40,000 D) Cost of Goods Sold 82,000 Finished Goods 82,000

The following information has been extracted from the records of Haverhill Company: Sales £400,000 Purchases of raw materials 70,000 Indirect labour 10,000 Indirect materials 4,000 Depreciation of factory equipment 15,000 Depreciation of factory buildings 11,000 Depreciation of admini strative building 41,000 Marketing costs 25,000 Direct labour 180,000 Raw material s inventory, 12-31-11 14,000 Work in progress, 1-1-11 31,000 Raw materials inventory, 1-1-11 10,000 Work in progress, 12-31-11 23,000 Finished goods inventory, 1-1-11 49,000 Finished goods inventory, 12-31-11 44,000 a.Prepare a statement of cost of goods manufactured. b.Prepare an income statement for the Haverhill Company for the year ending December 31, 2011.