The Following Inventory Information Is Available for Ricci Manufacturing Corporation

question 84

Essay

The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31 2017: $$\begin{array} { c r r } & \text { Beginning } & \text { Ending } \\\text { Inventories: } & & \\\text { Raw materials } & \$ 17,000 & \$ 19,000 \\\text { Work in process } & 9,000 & 14,000 \\\text { Finished goods } & 11,000 & 8,000 \\\text { Total } & \underline { \$ 37,000 } & \underline { \$ 41,000 }\end{array}$$ In addition the following transactions occurred in 2017:
1. Raw materials purchased on account $75000.
2. Incurred factory labor $80000 all is direct labor. (Credit Factory Wages Payable).
3. Incurred the following overhead costs during the year: Utilities $6800 Depreciation on manufacturing machinery $8000 Manufacturing machinery repairs $9200 Factory insurance $9000 (Credit Accounts Payable and Accumulated Depreciation).
4. Assigned $80000 of factory labor to jobs.
5. Applied $36000 of overhead to jobs.
Instructions
(a) Journalize the above transactions.
(b) Reproduce the manufacturing cost and inventory accounts. Use T-accounts.
(c) From an analysis of the accounts compute the following:
1. Raw materials used.
2. Completed jobs transferred to finished goods.
3. Cost of goods sold.
4. Under- or overapplied overhead.

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Definitions:

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