Glendale Gloves. Module 4. Transactions For June Process Costing. 1 st Edition

Transcription

1 Glendale Gloves Process Costing 1 st Edition Module 4 Transactions For June Page 1

2 Before recording the transactions for June 24 to, print a Trial Balance, print All Customers, and print All Vendors. TRANSACTIONS FOR JUNE June 24 Leather strips were purchased from Franklin Fibers for $ (net). The material, which arrived today, was placed into production in the Sewing and Packaging Department. Invoice Number: F1895. Vendor Number: June 24 Leather was purchased from Alamo Leather for $1, (net). The leather, which arrived today, was placed into production in the Cutting and Shaping Department and is anticipated to produce 400 units. Invoice Number: A4822. Units: M400U. Vendor Number: June 26 Home Plate Emporium delivered a check for payment of a sales invoice. Check the balance of the account in the Accounts Receivable Subsidiary Ledger and review the credit terms offered to customers. Invoice Number: GD601. Customer Number: June 26 Packaging materials were purchased from Casablanca Packaging for $ (net). The material was delivered today and placed into production in the Sewing and Packaging Department. Invoice Number: CP421. Vendor Number: A check was issued to Alamo Leather for payment of an invoice dated June 24, for $1, (net). Check Number: Invoice Number: A4822. Vendor Number: Page 2

3 Accrue the factory wages for the period of June 16 to for the Sewing and Packaging Department. Payroll records show the direct labor to be $ Invoice Number: PAYRL. Direct labor is charged to WIP Sewing and Packaging (123). Six hundred (600) units of product were transferred from the Sewing and Packaging Department to finished goods. One hundred (100) units remain in ending work in process in the department and are 40% complete as to conversion. Print a copy of ledger card 123 WIP Sewing and Packaging. Review your production report of June 14 for ending work in process balances to carry forward as the beginning work in process balances of. You have two options for calculating the cost of the goods transferred to finished goods: Option 1: Complete the forms at the end of this module (page7). Option 2: Complete the forms using Glendale Gloves programmed EUP Forms (Move the pointer to EUP Forms and select Equivalent Units Sewing and Packaging). Move the pointer to Data Entry, click on Daily JE, and enter the transfer of the completed units to the Finished Goods Inventory. Invoice Number: TRANS. Units: T600U. Wesley s Sporting Goods sent a check in payment of sales invoice of June 20. Check the balance of the account in the Accounts Receivable Subsidiary Ledger and review the credit terms offered to customers. Invoice Number: GD603. Customer Number: Page 3

4 Accrue the factory wages for the period of June 24 to for the Cutting and Shaping Department. Payroll records show the direct labor to be $ At the Invoice Number textbox enter PAYRL. Direct labor is charged to WIP Cutting and Shaping (121). Five hundred (500) units of finished goods were sold to Bantam Sports Equipment for $13, Invoice Number: GD604. Units: S500U. Customer Number: Accrue the offices salaries of $1, for the period of June 24 to. Invoice Number: PAYRL This concludes the transactions for June 24 to Now that you have completed entering the transactions for the last seven days of the internship program, June 24-30, 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. 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 below. If all of your check figures match the Check It Out box totals, print a Trial Balance for further reference as well as any other documents required by your instructor. Page 4

5 CHECK IT OUT 101 Cash $31, Accounts Receivable 16, Finished Goods 1, WIP Cutting and Shaping 2, MOH Cutting and Shaping (676.91) 123 WIP Sewing and Packaging MOH Sewing and Packaging (662.00) 201 Accounts Payable 1, Sales 219, Office Salaries Expense 18, Office Supplies Expense 1, Advertising Expense 6, Discounts Lost Interest Expense TRIAL BALANCE TOTAL $631, 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 5, which includes the adjusting and closing transactions for. 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 5. 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. For accuracy, efficiency, and a clear audit trail, use the correction system designed specifically for the Glendale Gloves accounting system. Examine your documents and locate the error(s), then return to the General Journal and record the required correction entries. Page 5

6 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. Make sure the journal entries from your manual match the journal entries in the General Journal. Make the necessary corrections by backing out each error entry and then reentering it correctly. 4. When your balances match the Check It Out box figures, you are ready to begin entering the transactions for Module 5, Adjusting and Closing Entries. To begin Module 5 you must first print a copy of the Module 5 manuscript. Move the pointer to Support on the Menu Bar and select Download Student Manual. Select Module 5 and print the manual. Although no printed documents are required for, if you wish any printed documents for this date, they must be printed now before recording the adjusting entries in Module 5. Additional entries will change the account balances. Your instructor may ask for a printed Trial Balance or other specific documents. BACKUP DATA FILES Go to Administration on the Menu Bar, scroll down to Backup Data Files, and click. You now have a copy of all of your work to the end of Module 4. This file will allow you to go back to this location even after continuing forward into Module 5. 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. Module 5 - Transactions for June When your balances match the Check It Out box figures, you are ready to begin entering the transactions for Module 5. To begin Module 5, you must first print a copy of the Module 5 manuscript. Move the pointer to Support on the Menu Bar and select Download Student Manual. Select Module 5: Adjusting Entries & Closing Entries and the Final Evaluation. 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 6

7 WIP (Work in Process) Sewing and Packaging Physical Units and Stages of Completion Percent Completed Units Materials Conversion Beginning work in process Units Units started into production Units completed and transferred Ending work in process % % Total units to account for: Total units accounted for: Equivalent Units of Production Weighted Average Materials Units transferred to Finished Goods Inventory Ending work in process ( units): Materials - units x % Conversion - units x % Equivalent units of production Conversion Costs per Equivalent Unit of Production Materials Costs of beginning work in process inventory $ $ Costs added during the period Total costs $ $ Equivalent units of production Cost per equivalent unit $ $ Conversion Costs of Ending Work in Process Inventory and the Units Transferred Out Materials Conversion Total Ending work in process (100 units): Materials - units x % x $ $ Conversion - units x % x $ $ Cost of ending work in process inventory $ Units completed and transferred out: Materials units x $ per unit $ Conversion units x $ per unit $ Cost of units completed and transferred $ Total Costs Accounted For: $ Page 7