Garrett Manufacturing Company uses a simple manufacturing accounting system. At the end of its fiscal year on August 31, 2012, the adjusted trial balance contains the following accounts.
|
Debits |
Credits |
||
|
Cash |
$16,700 |
Accumulated Depreciation |
$353,000 |
|
Accounts Receivable (net) |
62,900 |
Notes Payable |
45,000 |
|
Finished Goods Inventory |
56,000 |
Accounts Payable |
36,200 |
|
Work in Process Inventory |
27,800 |
Income Taxes Payable |
9,000 |
|
Raw Materials Inventory |
37,200 |
Common Stock |
352,000 |
|
Plant Assets |
870,000 |
Retained Earnings |
215,300 |
|
Raw Materials Purchases |
236,500 |
Sales |
988,000 |
|
Direct Labor |
283,900 |
$1,998,500 |
|
|
Indirect Labor |
27,400 |
||
|
Factory Repairs |
17,200 |
||
|
Factory Depreciation |
16,000 |
||
|
Factory Manager’s Salary |
60,000 |
||
|
Factory Insurance |
11,000 |
||
|
Factory Property Taxes |
14,900 |
||
|
Factory Utilities |
13,300 |
||
|
Selling Expenses |
96,500 |
||
|
Administrative Expenses |
115,200 |
||
|
Income Tax Expense |
36,000 |
||
|
$1,998,500 |
|||
Physical inventory accounts on August 31, 2012, show the following inventory amounts: Finished Goods $50,600, Work in Process $23,400, and Raw Materials $44,500.
Instructions
(a) Enter the adjusted trial balance data on a worksheet in financial statement order and complete the worksheet.
(b) Prepare a cost of goods manufactured schedule for the year.
(c) Prepare an income statement for the year and a balance sheet at August 31, 2012.
(d) Journalize the closing entries.
(e) Post the closing entries to Manufacturing Summary and to Income Summary.