wages paid in june include the balance in the wages payable account at may 31 and 32 645196

Comprehensive accounting for manufacturing transactions Howie Stars produces stars for elementary teachers to reward their students. Howie Stars’ trial balance on June 1 follows:

HOWIE STARS Trial Balance June 1, 2012
	Balance
Account Title	Debit	Credit
Cash	$ 14,000
Accounts receivable	155,000
Inventories:
Materials	5,700
Work in process	39,400
Finished goods	20,400
Plant assets	200,000
Accumulated depreciation		$ 72,000
Accounts payable		127,000
Wages payable		1,700
Common stock		142,000
Retained earnings		91,800
Sales revenue	—	—
Cost of goods sold	—
Manufacturing overhead	—
Marketing and general expenses	—
Total	$434,500	$434,500

a. June 1 balances in the subsidiary ledgers were as follows:

b. Materials subledger: Paper, $4,700; indirect materials, $1,000

c. Work in process subledger: Job 120, $39,400; $0 for Job 121

d. Finished goods subledger: Large Stars, $9,400; Small Stars, $11,000

June transactions are summarized as follows:

Collections on account, $152,000.

1. Marketing and general expenses incurred and paid, $28,000.
2. Payments on account, $36,000.
3. Materials purchases on credit: Paper, $22,900; indirect materials, $3,800.
4. Materials used in production (requisitioned):

• Job 120: paper, $850

• Job 121: paper, $7,650

• Indirect materials, $1,000

e. Wages incurred and assigned during June, $35,000. Labor time records for the month: Job 120, $3,500; Job 121, $16,600; indirect labor, $14,900.

f. Wages paid in June include the balance in the Wages payable account at May 31 and $32,200 of wages incurred during June.

g. Depreciation on plant and equipment, $2,600.

h. Manufacturing overhead was allocated at the predetermined rate of 50% of direct labor cost.

i. Jobs completed during the month: Job 120, 300,000 Large Stars at total cost of $45,500.

j. Credit sales on account: all of Job 120 for $111,000.

k. Closed the Manufacturing overhead account to Cost of goods sold.