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The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.

Advertising expense . . . . . . . . . . . . . . . . $28,750
Depreciation expense—Office equipment . . . . . . . .  7,250
Depreciation expense—Selling equipment . . . . . . . . 8,600
Depreciation expense—Factory equipment . . . . . . .  33,550
Factory supervision . . . . . . . . . . . . . . . .  102,600
Factory supplies used (indirect materials) . . . . . . 7,350
Factory utilities . . . . . . . . . . . . . . . . . . 33,000
Direct labor . . . . . . . . . . . . . . . . . . . . 675,480
Indirect labor . . . . . . . . . . . . . . . . . . .  56,875
Miscellaneous production costs . . . . . . . . . . . . 8,425
Office salaries expense . . . . . . . . . . . . . . . 63,000
Raw materials purchases (direct materials) . . . . . 925,000
Rent expense—Office space . . . . . . . . . . . . . . 22,000
Rent expense—Selling space . . . . . . . . . . . . .  26,100
Rent expense—Factory building . . . . . . . . . . . . 76,800
Maintenance expense—Factory equipment . . . . . . . . 35,400
Sales . . . . . . . . . . . . . . . . . . . . . .  4,462,500
Sales salaries expense . . . . . . . . . . . . . . . 392,560

Using the following additional inventory information for Leone Company, complete the requirements below. Assume income tax expense is$233,725 for the year.

Inventories

Raw materials, December 31, 2018 . . . . . . . . $166,850 
Raw materials, December 31, 2019 . . . . . . . .  182,000 
Work in process, December 31, 2018 . . . . . . . . 15,700 
Work in process, December 31, 2019 . . . . . . . . 19,380
Finished goods, December 31, 2018 . . . . . . . . 167,350
Finished goods, December 31, 2019 . . . . . . . . 136,490

Required

  1. Prepare the company’s 2019 schedule of cost of goods manufactured.
  2. Prepare the company’s 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are$500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April arc: indirect materials,$50,000; indirect labor, $23,000; factory rent,$32,000; factory utilities, $19,000; and factory equipment depreciation.$51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

Job 306Job 307Job 308Balances on March 31Direct materials$29,000$35,000Direct labor20,00018,000Applied overhead10,0009,000Costs during AprllDirect materials135,000220,000$100,000Direct labor85,000150,000105,000Applied overhead???Status on April 30Finished (sold)Finished (sold)Finished (sold)\begin{array}{lrrr} \textbf{}&\textbf{Job 306}&\textbf{Job 307}&\textbf{Job 308}\\[5pt] \text{Balances on March 31}&\text{}&\text{}&\text{}\\ \qquad\text{Direct materials}&\text{\$29,000}&\text{\$35,000}&\text{}\\ \qquad\text{Direct labor}&\text{20,000}&\text{18,000}&\text{}\\ \qquad\text{Applied overhead}&\text{10,000}&\text{9,000}&\text{}\\ \text{Costs during Aprll}&\text{}&\text{}&\text{}\\ \qquad\text{Direct materials}&\text{135,000}&\text{220,000}&\text{\$100,000}\\ \qquad\text{Direct labor}&\text{85,000}&\text{150,000}&\text{105,000}\\ \qquad\text{Applied overhead}&\underline{\text{\hspace{10pt\hspace{19pt}}?}}&\underline{\text{\hspace{10pt\hspace{19pt}}?}}&\underline{\text{\hspace{10pt\hspace{19pt}}?}}\\ \text{Status on April 30}&\text{Finished (sold)}&\text{Finished (sold)}&\text{Finished (sold)}\\ \end{array}

Required

  1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead) and the total cost assigned to each job (including the balances from March 31).

  2. Prepare journal entries for the month of April to record the following.

a. Materials purchases (on credit).

b. Direct materials used in production.

c. Direct labor paid and assigned to Work in Process Inventory.

d. Indirect labor paid and assigned to Factory Overhead.

e. Overhead costs applied to Work in Process Inventory.

f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities arc paid in cash.)

g. Transfer of Jobs 306 and 307 to Finished Goods Inventory.

h. Cost of goods sold for Job 306.

i. Revenue from the sale of Job 306.

j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

  1. Prepare a schedule of cost of goods manufactured.

  2. Compute gross profit for April. Show how to present the inventories on the April 30 balance sheet.

  3. Over- or underapplied overhead is closed to Cost of Goods Sold. Is this adjustment also posted to individual job cost sheets?

Question

Career Focus Pharmaceutical Researcher\textbf{Career Focus Pharmaceutical Researcher} Research the field of antibiotic pharmaceutical research and write a report on your findings. Your report should include a job description, training required, kinds of employers, growth prospects, and starting salary.

Solution

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A pharmaceutical researcher is a professional that conducts research to discover new medications. They help in developing, testing, and manufacturing new drugs in a laboratory.

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