FIGLEAF.COM
POST-CLOSING TRIAL BALANCE
MAY 31, 2005
CASH 475,000
ACCOUNTS RECEIVABLE 75,000
ALLOW FOR UNCOLLECTIBLE ACCTS 5,000
NOTES RECEIVABLE 200,000
RAW MATERIALS 50,000
WORK IN PROCESS, PEGASUS 25,000
WORK IN PROCESS, CERBERUS 65,000
WORK IN PROCESS, ACHILLES 10,000
FINISHED GOODS 75,000
MOLDING MACHINES 1,000,000
ACCUMULATED DEP(100K/YEAR) 491,667
OFFICE FURNITURE/EQUIPMENT 75,000
ACCUMULATED DEP(5K/YEAR) 14,583
PATENTS 25,000
ACCOUNTS PAYABLE 125,000
NOTES PAYABLE 25,000
COMMON STOCK 600,000
RETAINED EARNINGS 813,750
TOTALS $2,075,000 $2,075,000
TRANSACTIONS FOR THE MONTH OF JUNE:
1) PURCHASED RAW MATERIALS (CEMENT, DYES, STONES) TOTALLING $350,000.
2) REQUISITIONED INTO PRODUCTION IN MONTH OF JUNE: $350,000.
3) 2 JOBS FINISHED IN JUNE:
A) PRODUCTION OF 400 PEGASUS STATUES (PRICE: $750/EACH) COSTS:
1) RAW MATERIALS USED: $125,000 IN RAW MATERIALS.
2) DIRECT LABOR COSTS: ACTUAL HOURS WORKED ON THIS JOB: 1900. AVERAGE COST PER HOUR: $20
3. OVERHEAD: THE COMPANY USES A PREDETERMINED OVERHEAD RATE BASED ON DIRECT LABOR HOURS CALCULATED AT THE BEGINNING OF THE FISCAL YEAR. THE TOTAL OVERHEAD ESTIMATED AT THE BEGINNING OF THE YEAR WAS $2,000,000. THE COMPANY ESTIMATED IT WOULD USE 50,000 HOURS OF DIRECT LABOR FOR YEAR.
B): PRODUCTION OF 600 CERBERUS STATUES: PRICE: $600 EACH.
1) RAW MATERIALS USED: $175,000.
2) DIRECT LABOR: ACTUAL HOURS WORKED: 2,000. AVERAGE COST PER HOUR: $20
3) OVERHEAD APPLIED AGAIN USING THE ABOVE PREDETERMINED OVERHEAD RATE.
C) A THIRD JOB,PRODUCTION OF 200 ACHILLES STATUES, IS STILL ON THE FACTORY FLOOR AT THE END OF THE MONTH. THE FOLLOWING INFORMATION IS AVAILABLE: PRICE: $500 EACH.
1) RAW MATERIALS USED SO FAR: $50,000
2) DIRECT LABOR HOURS USED: 900 AT $20/HOUR
3) OVERHEAD AGAIN IS APPLIED AT THE PREDETERMINED OVERHEAD RATE.
ADDITIONAL DATA:
ACTUAL COSTS INCURRED IN THE MONTH OF JUNE:
1) RENT EXPENSE IS $10,000/MONTH. A??3 OF THIS IS FACTORY RENT.
2) UTILITY EXPENSE IS $4,250 FOR THE MONTH OF JUNE. $3,250 IS FOR FACTORY UTILITY COSTS; THE REMAINING IS FOR THE ADMINISTRATIVE OFFICES.
3) THE SALARIES FOR THE MONTH ARE $321,000. THIS INCLUDES: $96,000 INCURRED FOR DIRECT LABOR COSTS (ALREADY RECORDED); $125,000 FOR ADMINISTRATIVE AND SALES SALARIES; THE REMAINING IS FOR INDIRECT LABOR COSTS.
4) ALL DEPRECIATION ON THE MOLDING MACHINES IS A FACTORY EXPENSE.
5) 2/3 OF THE PROPERTY TAX EXPENSE IS LEVIED ON THE FACTORY; THE PROPERTY TAX ESTIMATED FOR EACH MONTH IS $4,000.
6) ADDITIONAL MISCELLANEOUS MANUFACTURING OVERHEAD AMOUNTED TO $70,000.
INFORMATION NECESSARY TO PREPARE ENTRIES:
ALL SALES ARE ON ACCOUNT.
ALL PURCHASES OF INVENTORYARE ON ACCOUNT.
ALL OTHER EXPENSES ARE PAID IN CASH.
DURING THE MONTH THE COMPANY PAID $125,000 ON ACCOUNT AND RECEIVED $75,000 ON ACCOUNT.
SALES FOR THE MONTH:
1) SOLD BEGINNING INVENTORY IN FINISHED GOODS FOR $150,000
2) SOLD ALL OF THE PEGASUS ORDER OF 400 STATUES ‘ PRICE $750 EACH.
REMAINING IN FINISHED GOODS INVENTORY: THE CERBERUS ORDER.
REMAINING IN WORK IN PROCESS INVENTORY: THE ACHILLES ORDER.
YOU WILL NEED TO A) PREPARE THE JOURNAL ENTRIES TO RECORD THE TRANSACTIONS FOR THE MONTH INCLUDING THE FLOW OF INVENTORY AND APPLIED OVERHEAD.