Glendale Gloves. Module 1. Transactions For June 3-9. Process Costing. 1 st Web-Based Edition

Transcription

1 Glendale Gloves Process Costing 1 st Web-Based Edition Module 1 Transactions For June 3-9 Page 1

2 Begin the Glendale Gloves Program When you have: (1) Printed and carefully read Getting Started With Glendale Gloves, (2) Registered as a user of this website, (3) Carefully read pages 2-9 of An Introduction to Glendale Gloves, and (4) A good understanding of the accounts used by Glendale Gloves, you are ready to begin the journalizing process. The transactions for the first work week in June follow. You are encouraged to prepare your account entry information before using the computer in order to speed up your data entry time. An example of a written analysis before the data entry is shown on page 4 with the first June 3 transaction. You may prefer to analyze each entry and record the transaction on the computer at the same time. You will be able to access the chart of accounts, customer and vendor lists on the screen during the data entry process. This makes the recording of transactions and related information a very quick, easy, and efficient procedure. If you are currently logged on to web browser, log on to 1. To access the Glendale Gloves program, click on the Glendale Gloves log in button on the home page. 2. At the log in page, enter your User ID and Password. Then click on Log In. 3. On the Data Entry page, move the pointer to Data Entry, and click. 4. Click on Daily JE (Daily Journal Entries). 5. Click OK again if there are no current journal entries. The Clear Screen button: When accessing the Data Entry Page, if there are journal entries already recorded from an earlier session, the last entry recorded will appear in the data entry form. Click on the Clear Screen button to erase this entry from the screen. This feature allows you to view the last entry you made prior to logging off the program or moving from other selection options on the Menu Bar. NOTE: Be sure to disable any Pop-up Blockers installed on your computer. Disabling Pop-up Blockers allows you to print documents in any PKL Software program without complications caused by the Pop-up Blockers. To disable Internet Explorer s Pop-up Blocker, follow the instructions on page 3. Page 2

3 To Disable Internet Explorer s Pop-up Blockers Disabling Pop-up Blockers is essential for printing any documents required by the program. However, while eliminating any unnecessary complications caused by Pop-up Blockers for the PKL Software environment, the following procedures will not remove Pop-up Blockers for any other programs you wish to run. To disable Internet Explorer s Pop-up Blocker, perform the following steps: 1. Launch Internet Explorer. 2. From the Tools drop down menu select Internet Options. 3. Click first on the Privacy tab and then the Settings button under the Pop-up Blocker section at the bottom of the window. 4. Enter in the space below the Address of Website to allow and click on the Add button. 5. Close the Pop-up Blocker Settings window and click on the OK button to close the Internet Options window. If you still experience difficulties printing your documents you may need to remove the Popup Blockers as a step in the printing process. All documents will print if Pop-up Blockers or firewall barriers are removed entirely for PKL Software programs. To Disable Google Toolbar s Pop-up Blockers To disable Google Toolbar's Pop-up Blockers, perform the following instructions: 1. To completely disable Google Toolbar s Pop-up Blocker, open the Toolbar Options window and clear the checkbox next to Pop-up Blocker in the Accessories section. To let a Pop-up through on a one time basis, press and hold the CTRL key as you click on a link to navigate to the new page. Page 3

4 Printing a Trial Balance, a Schedule of Accounts Receivable, a Schedule of Accounts Payable, and a Chart of Accounts Before recording the transactions for June 3 to June 9, print a Trial Balance, a Schedule of Accounts Receivable and a Schedule of Accounts Payable. 1. Move the pointer to Journal/Ledgers/Statements, select General Ledger, and click. When the Trial Balance appears, click on the Print button and print the Trial Balance for June 2. The Trial Balance Total is $622, Move the pointer to Journal/Ledgers/Statements, highlight Subsidiary Ledgers, move across to Accounts Receivable Ledger, and click. When the Schedule of Accounts Receivable appears on the screen, click on the Print button and print the Schedule of Accounts Receivable. The Total for Accounts Receivable is $24, Move the pointer to Journal/Ledgers/Statements, highlight Subsidiary Ledgers, move across to Accounts Payable Ledger, and click. When the Schedule of Accounts Payable appears on the screen, click on the Print button and print the Schedule of Accounts Payable. The Total for Accounts Payable is: $20, Move the pointer to Journal/Ledgers/Statements, select Chart of Accounts, and click. When the Chart of Accounts appears on the screen, click on the Print button and print the Chart of Accounts. Beginning the Recording Procedure Move the pointer to Data Entry and click. At the Data Entry page, click on Daily JE (daily journal entries). Click on OK at the reminder message. With the cursor at the Date box, you are ready to begin recording the transactions for June 3 to June 9. Page 4

5 Transactions for June 3 to June 9 June 3 A check was issued to replenish the Petty Cash account (102). The petty cash vouchers total $22.50 for miscellaneous expenses and $15.60 for Office Supplies Expense. The Petty Cash account is to be increased to $ The current balance in the petty cash drawer is $ Record the entry to replenish the petty cash and increase its balance. Check Number: Invoice Number: PC Petty Cash $ Office Supplies Expense $ Miscellaneous Expense $ Cash $ At the date prompt, for June 3, enter 03 for day and press the Tab key. When entering any part of the transaction, you may back up and reenter the information by using the Backspace key. If you have already pressed the Tab key after entering the date and wish to change it, click in the date prompt and backspace (or delete) the incorrect date, then enter the correct date. 2. To debit Petty Cash, at the account prompt enter 102 and press the Tab key. In the debit amount column enter (do not include the $ sign) and press the Tab key. If the account or amount is incorrect, click on the appropriate item and reenter. Tab to the next position. 3. At the account prompt, enter 602. Tab to the debit column, enter and press the Tab key twice. 4. At the account prompt, enter 629. Tab to the debit column, enter and press the Tab key twice. 5. Enter 101 to record the credit to the Cash account. Tab to the credit column and enter (do not press the Enter key or the Tab key). Press the Verify Journal button. If the date, entry account number, or amounts are not properly entered, you will be given an error message with the appropriate details. If the entry is correct, the pointer will appear in the Check Number text box. If any part of the journal entry is incorrect, click on the date, account, or amount location and reenter the correct information. 6. At the Check Number text box enter check number and press the Tab key. 7. At the Invoice Number text box, enter invoice number PC603. Document letters may be entered in upper or lower case. Page 5

6 8. Check the entry carefully. If, for example, you wish to make a correction to the invoice number, click on the invoice entry box and enter the correct number. If the entry is correct, click on the Verify Documents button then click on the Post Entry button. Error Correction June 3 You discovered that the entry of $22.50 debited to the Miscellaneous Expense account was in error. The debit should have been to the Advertising Expense account. To correct this error, 1. Record this journal entry to reverse the error: 101 Cash Miscellaneous Expense Click on Verify Journal. Enter PC603 at the Invoice Number text box. Click on the Verify Documents button, then click on Post Entry. 2. Follow with this entry to make the correction: 604 Advertising Expense Cash Click on Verify Journal. Enter ERROR at the Check Number text box and press the Tab key Enter PC603 at the Invoice Number text box. Click on Verify Documents, then click on Post Entry. This error correction procedure leaves a clear audit trail of all corrections and is to be followed throughout this business simulation. Except for errors in entering customer or vendor numbers (or names), it is recommended that you DO NOT correct entries because of an error in entering other documentation. Merely make a note of the correct documentation for later reference in subsequent transactions or evaluation questions. Page 6

7 Automatic Balancing of Journal Entry Amounts June 3 Factory equipment was purchased on account from Prescott Tool and Dies at a total invoice price of $3, (net). Sales tax is included in the invoice price of this asset. Prescott Tool and Dies offers credit terms of 2/10, n/30. Invoice Number: P2066. Vendor Number: At the date prompt enter 03 for the day and tab to the Debit account column. 2. Enter account 135 Factory Equipment and press the Tab key. 3. Enter 3485 for the debit amount and press the Tab key. 4. Enter account 201 (Accounts Payable) and press the tab key to the credit column. 5. At the credit column, type the letters CV or cv. The C key stroke copies the amount of the debit into the credit column. The V key stroke verifies the entry, eliminating the need to press the Verify Journal button. The CV combination can be used for simple debit and credit entries and for compound journal entries at the last credit dollar column. This key combination will only work if you are using the Internet Explorer browser. 6. At the Invoice Number text box enter P At the Customer/Vendor prompt click on Prescott Tool and Dies from the pull-down list or enter 24100, the vendor account number. 8. Click on the Verify Documents button, then click on the Post Entry button. Page 7

8 June 3 A check was issued to Alamo Leather. The invoice was recorded net of discount, at $12, Check Number: Invoice Number: A4589. Vendor Number: Enter the Date June 3 date and tab to the account title column. 2. Click on debit entry box and the pull-down Chart of Accounts will appear. Click on account number 201 (Accounts Payable) and the account title will automatically be entered in the account title column of the general journal and the account number will appear in the account number column. Tab to the debit column and enter as the debit column amount. 3. Click the next account entry box and the pull-down screen will appear again. Click on the Cash account (account number 101). Tab to the credit column and enter CV. 4. At the Check Number text box enter and press the Tab key. 5. At the Invoice Number text box enter A4589 and press the Tab key. 6. At the Customer/Vendor prompt enter Check the date for accuracy and click on Verify Documents. 8. Click on Post Entry. An alternative to using the pull-down screen for acquiring the account number is to write the account number in the student analysis portion of the transaction and enter the correct account number at the Account Number prompt. Using the data entry techniques demonstrated in the previous transactions, complete the remaining transactions for the period of June 3-9. From this point forward, you will have to depend on your understanding of the program s functions and special features. Remember to use the short-cut techniques of D for repeating date and CV for credit-verify when recording transactions. Page 8

9 June 4 Galaxy Sports Equipment was billed $10, for baseball gloves. Credit terms offered to all customers are 2/10, 1/30, n/60. Invoice Number: GD600. At the Units textbox enter S400U, for Sold 400 Units. Customer Number: Note: After the entry to record a sale is posted, the program will automatically record and post a debit to the Cost of Goods Sold account and a credit to the Finished Goods Inventory account for the cost of goods sold of $4, June 4 Received $2, cash from customer Wesley s Sporting Goods in payment of a sales invoice of $2,600.00, dated May 28. Invoice Number: GD598. Customer Number: Note: Credit terms offered to customers are 2/10, 1/30, n/60. June 4 Glendale Gloves received an invoice for $ (net) from Zenith Leather. The leather was shipped today and received as work-in-process by the Cutting and Shaping Department (account number 121). Three hundred (300) units are to be cut and shaped from the leather. Invoice Number: Z2610. At the Units textbox enter M300U for Materials, 300, Units. Vendor Number: Note: The correct documentation for units is not critical for the operation of the program, but is critical to help you keep track of units when determining the equivalent units of production. June 7 Purchased for cash $ of factory supplies. Check Number: Invoice Number: FS101. June 7 Factory supplies were issued to the Cutting and Shaping Department and the Sewing and Packaging Department. Debit MOH Cutting and Shaping (122) for $50.00 and debit MOH Sewing and Packaging (124) for $80.00, and credit Factory Supplies (118) for $ Invoice Number: TRANS. Overhead: FSUPP Page 9

10 June 9 Glendale Gloves issued a check for $1, for an advertisement in Sports Weekly. Check Number: Invoice Number: SP899. Reminder: The Advertising Expense account is used to record the payment of all advertising and promotion. June 9 Accrue the office salaries for the period of June 3 to June 9. Payroll records show the accrued office salaries to be $1, Invoice Number: PAYRL. June 9 Accrue the factory wages for the period of June 3 to June 9 for the Cutting and Shaping Department. Payroll records show direct labor of $ Direct labor is charged to the WIP Cutting and Shaping account (121). Invoice Number: PAYRL. After posting this entry to record the accrued direct labor, do the following: 1. Move the pointer to Journal/Ledgers/Statements and select General Journal. 2. Scroll down the General Journal to the last entry. 3. Note the debit to WIP Cutting and Shaping and the credit to MOH Cutting and Shaping for $ Move the pointer to Journal/Ledgers/Statements and select General Ledger. 5. Click on Ledger Cards and from the pull-down menu select account 121 WIP Cutting and Shaping. 6. Click on Show Ledger Card. 7. Note the notation for direct labor (PAYRL) for the $ entry and the notation for overhead (OVRHD) for the $ entry. Page 10

11 The $ is 80% of the direct labor charged to WIP Cutting and Shaping, which is the predetermined rate of overhead application for the Cutting and Shaping production department. The program will automatically record and post the overhead application entry whenever direct labor is recorded for either of the production departments. Return to the data entry process by clicking on Data Entry. June 9 Four hundred (400) units of product were transferred from the Cutting and Shaping Department to the Sewing and Packaging Department. One hundred (100) units remain in ending work in process in the department and are 25% complete as to conversion costs. Glendale Gloves uses the weighted-average method for computing equivalent units of production. Before you record this transfer, do the following: 1. Move the pointer to Journal/Ledger/Statements, select General Ledger, and click 2. Click on Ledger Card 3. From the pull-down menu, select 121 WIP Cutting and Shaping 4. Click on Show Ledger Card 5. Click on Print and print the ledger card Use the information in the Introduction (Page 8) and in the general ledger card of account 121, WIP Cutting and Shaping to verify the amounts in the forms on the following page. Invoice Number: TRANS. Units: T400U (for Transferred, 400, Units). After reviewing the forms for accuracy, move the pointer to Data Entry, click on Daily JE and enter the transfer of units from the Cutting and Shaping Department to the Sewing and Packaging Department. Page 11

12 WIP (Work in Process) Cutting and Shaping Physical Units and Stages of Completion Percent Completed Units Materials Conversion Beginning work in process Units 200 Units started into production June Units completed and transferred 400 Ending work in process % 25% Units to account for: 500 (= ). Units accounted for: 500 (= ) Equivalent Units of Production Weighted Average Materials Conversion Units transferred to the Sewing and Packaging Ending work in process (100 units): Materials % 100 Conversion % 25 Equivalent units of production Costs per Equivalent Unit of Production Materials Conversion Costs of beginning work in process inventory $ $ Costs added during the period Total costs $1, $ Equivalent units of production Cost per equivalent unit $3.00 $1.80 Total costs are $2, (= $1, $765.00) Costs of Ending Work in Process Inventory and the Units Transferred Out Materials Conversion Total Ending work in process (100 units): Materials units x 100% x $3.00 $ Conversion units x 25% x $1.80 $45.00 Cost of ending work in process inventory $ Units completed and transferred out: Materials 400 $3.00 per unit $1, Conversion 400 $1.80 per unit $ Cost of units completed and transferred $1, Page 12

13 June 9 Packaging materials were purchased from Casablanca Packaging for $ (net). The materials were shipped today and delivered to the Sewing and Packaging Department. Invoice Number: CP333. Vendor Number: Glendale Gloves uses a just-in-time (JIT) inventory system. Note: When raw material is scheduled to be used in the production process, it is ordered to arrive when needed so it can be placed directly into the production process. Glendale Gloves does not maintain a Raw Materials Inventory account. JIT scheduling is based on sales orders and the promised shipping dates to customers. June 9 Stripping materials were purchased from Plymouth Cords for $ (net). The materials were shipped today and delivered to the Sewing and Packaging Department. Invoice Number: P5688. Vendor Number: June 9 A check was issue to Franklin Fibers for an invoice dated June 2 with credit terms of 2/10, n/30. The $5, invoice was recorded net at $5, Check Number: Invoice Number: F1001. Vendor Number: June 9 You discovered that the invoice dated May 6 from Plymouth Cords has been misfiled and the discount period has expired. The invoice was recorded net at $1, Record the issuance of a check for the amount payable of $1,836.73, and recognize the discount lost. Check Number: Invoice Number: P5612 Vendor Number: This concludes the transactions for June 3 to June 9. Now that you have completed entering the transactions for the first seven days of the internship program, June 3-9, it is time to check the accuracy of your work. In the "Check It Out" box below are the correct balances of key accounts that you have been working with this period. Page 13

14 1. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, move down to the General Ledger selection, and click. The completed Trial Balance will appear on the screen. 2. Check your balances against the totals shown in the Check It Out on the next page. If all of your check figures match the Check It Out box totals, print a Trial Balance for further reference or any other documents required by your instructor. CHECK IT OUT 101 Cash $17, Accounts Receivable 32, Finished Goods WIP Cutting and Shaping MOH Cutting and Shaping (157.00) 123 WIP Sewing and Packaging 6, MOH Sewing and Packaging Accounts Payable 6, Sales 197, Office Salaries Expense 14, Office Supplies Expense 1, Advertising Expense 6, Discounts Lost Miscellaneous Expense TRIAL BALANCE TOTAL $621, If all of your totals match the check figures and you have printed all documents required by your instructor, you are ready to begin the data entry for Module 2. See last page of this module for further directions. If any of your account balances DO NOT MATCH THE CHECK FIGURES in the Check It Out box, you must correct the unmatched balances before continuing to Module 2. The most efficient method of locating and correcting the error(s) is to print a copy of the Trial Balance and a copy of the General Journal. Page 14

15 For accuracy, efficiency, and a clear audit trail use the correction system designed specifically for the Glendale Gloves accounting system. Any account that is not correct provides a clue for the entry or entries for you to investigate. You have two options available to you for handling unmatched balances at the end of this Module. OPTION ONE: Find and Correct the Errors. 1. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to General Ledger and click. Print a copy of the Glendale Gloves Trial Balance. 2. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to General Journal and click. Print a copy of the General Journal. 3. From the accounts on the Trial Balance that do not match the check figures, check your journal entries for errors. Verify that the journal entries from the Module match the journal entries you recorded. Make the necessary corrections by backing out each incorrectly recorded entry and then reentering it correctly. OPTION TWO: Starting Over Reset to the Beginning of the set. If you find that you have several errors, you may wish to reset to the beginning of the practice set and start again. The reset option can be used only up to the end of Module 1, (June 9). You cannot reset back to the beginning of the practice set if you have entered journal entries for Module 2 or June 10 th or later. To reset back to the beginning of the practice set, move the pointer to Support, select Restore To Beginning Balances and click. Click on Start Copy and your files will be set to June 2 balances, the beginning of the project. Detailed error correction procedures for Glendale Gloves were explained on page 6 of this module. Although no printed documents are required for June 9, if you wish any printed documents for this date, they must be printed now before entries for the second accounting period of June are recorded. Additional entries will change the account balances. Your instructor may ask for a printed Trial Balance or specific documents. BACKUP DATA FILES Go to Administration on the Menu Bar and scroll down to Files: Reset and Backup. Select Backup Data Files and click. Click on Start Backup. Click on OK. You now have a copy of all of your work up to the end of Module 1. This file will allow you to go back to this location even after working further forward into Module 2. Page 15

16 Module 2 - Transactions for June and Mid Project Evaluation When your balances match the Check It Out box figures, you are ready to begin entering the transactions for Module 2, June To begin Module 2, you must first print a copy of the Module 2 manuscript. Move the pointer to Support on the Menu Bar and select Download Manual. Select Module 2: Transactions for June and Mid Project Evaluation and print the manual. If you have completed your work for this session, move the pointer to Administration on the Menu Bar, click on Home Page, and then exit the program. Page 16