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11-18A The following trial balance was taken from the records of Wheaton Manufacturing Company at the beginning of 2012.
Cash 9,400
Raw Material inventory $750
Work in process inventory $1,200
Finished goods inventory $2,100
Property, plant, and equip.$7,500
Accumulated depreciation $3,000
Common Stocks $7,800
Retained earnings $10,150
Total $20,950 $20,950
a. Open T-accounts with the beginning balance shown from the list above and record all transactions for the year including closing entries in the t-account
b. Prepare a schedule of cost of goods manufactured and sold, and income statement, and balance sheet.
1. Wheaton Purchased $5,700 of direct raw materials and $300 of indirect raw material on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,400 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
2. By the end of the year, $5,250 of the accounts payable had been paid in cash
3. During the year. direct labor amounted to 950 hours recorded in the wages payable account at $10.50 per hour
4. By the end of the year $9,000 of wages payable had been in cash
5. At the beginning of the year, the company expected overhead cost for the period to be $6,300 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which as indicated in event 3 amounted to 950 for the year.
6. Selling and administrative expense for the year amounted to $900 paid in cash
7. Utilities and rent for production facilities amounted to $4,650 paid in cash
8. Depreciation on the plant and equip. used in production amounted to $1,500
9. There was $12,000 of goods completed during the year
10. There was $12,750 of finished goods inventory sold for $18,000 cash
11. A count of the production supplies revealed a balance of $89 on hand at the end of the year
12. Any over or under-applied overhead is considered to be insignificant.