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) TOTALING $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.
YOU WILL NEED TO A) PREPARE THE JOURNAL ENTRIES TO RECORD THE TRANSACTIONS FOR THE MONTH INCLUDING THE FLOW OF INVENTORY AND APPLIED OVERHEAD.