Lone Company Trial Balance:
Account Title: Debit: Credit:
Cash $18,000
Accounts Recievable 165,000
Inventories:
Materials 5700
Work in process 42500
Finished goods 22200
Plant assets 200,000
Accumulated depriciation 71,000
Accounts payable 133,000
Wages Payable 1500
Common stock 140,000
retained earnings 107,900
Sales Revenue
Cost of goods sold
Manufacturing overhead
Marketing & general expenses
Total 453,400 453,400
April balances in subsidiary ledgers:
Materials subledger: paper, $4,500; indirect materials, $1200.
Work in process: Job 120, $42,500; Job 121 $0.
Finished goods: Large stars, $9300; small stars, $12,900.
April Transactions:
a Collections on account $141,000
b Marketing & general expenses incurred & paid $31,000
c Payments on account $41,000
d Materials purchased on credit: Paper $23,000; Indirect materials $4,200
e Materials used in production (requisitioned):
Job 120 paper $500; Job 121 paper $7,700
f Wages incurred & assigned during April, $43,000. Labor time records for the month: job 120, $3500; job 121, $16,600; indirect labor $22,900.
g wages paid in April include: the balance in the wages payable account for March 31 & $40,300 of wages incurred in April.
h depriciation of plant & equiptment $3,200
i Manufacturing overhead was allocated at a predetermined rate of 80% of direct labor cost.
j Jobs completed during the month: job 120. 500,000 large stars at total cost of $49,300.
k Credit sales on account: all of job 120 for $133,000
l closed the manufacturing overhead account to cost of goods sold.
1. Journalize the transactions for the company. Lone uses a perpetual inventory system. (record debits first then credits)
Begin with transaction (a), collections on account $141,000