In Gerth Manufacturing,production Is Started in the Fabricating Department

question 78

Essay

In Gerth Manufacturing,production is started in the fabricating department.The work is then transferred to the finishing department where goods are completed and then transferred to the finished goods storeroom.Data about the company's costs during February 2016 are given below. During the month,products costing $45,000 were transferred from the fabricating department to the finishing department;goods costing $56,000 were transferred from the finishing department to finished goods inventory;and goods that cost $63,000 were sold on account for $79,000.Record the following events on page 3 of a general journal.Use February 28 as the date.Omit descriptions.
(a. )Place materials into production
(b. )Charge labor costs into production
(c. )Charge overhead costs into production
(d. )Transfer product from fabricating department to finishing department
(e. )Transfer finished goods from finishing department to finished goods inventory
(f. )Sale of goods
(g. )Record cost of goods sold

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Definitions:

Accounting Period

A specific period of time for which financial statements are prepared to report the financial performance and position of a company; often quarterly or annually.

Adjusting Entries

Journal entries made at the end of an accounting period to adjust the income and expenditure records for accuracies in financial reporting.

Financial Statements

Reports that provide detailed information about a company's financial position and performance, including the balance sheet, income statement, and cash flow statement.

Accounting System

A systematic arrangement of both manual and automated accounting processes, techniques, and safeguards designed to collect, document, categorize, scrutinize, condense, elucidate, and convey precise and up-to-date financial information.