Solved

On October 1,the General Ledger of Morgan Industries Had the Following

question 143

Essay

On October 1,the general ledger of Morgan Industries had the following accounts and balances:
$\begin{array} { | l | r | } \hline \text { Materials irn' entory } & \$ 19,200 \\\hline \text { Mork-in-process inventory } & 48,750 \\\hline \text { Finished goods im'entory } & 8,100 \\\hline \text { Manufacturing ou'erhead (overapplied) } & 2,000 \\\hline\end{array}$
The subsidiary ledgers had the following information on October 1:
$On October 1,the general ledger of Morgan Industries had the following accounts and balances: \begin{array} { | l | r | } \hline \text { Materials irn' entory } & \$ 19,200 \\ \hline \text { Mork-in-process inventory } & 48,750 \\ \hline \text { Finished goods im'entory } & 8,100 \\ \hline \text { Manufacturing ou'erhead (overapplied) } & 2,000 \\ \hline \end{array} The subsidiary ledgers had the following information on October 1: During October,the following costs were incurred on account: \begin{array} { | l | r | } \hline \text { Materials } & \$ 46,500 \\ \hline \text { Factory labor } & 49,000 \\ \hline \text { Manufacturing owerhead } & 56,350 \\ \hline \end{array} A summary of the materials requisition slips and the labor time tickets for the month revealed the following distribution: \begin{array} { | l | r | r | } \hline \text { Applicable To } & \text { Materials Pequisitions } & \text { Time Tickets } \\ \hline \text { Job B81 } & \$ 8,000 & \$ 4,000 \\ \hline \text { Job B83 } & 5,100 & 1,700 \\ \hline \text { Job B84 } & 8,600 & 10,500 \\ \hline \text { Job B85 } & 19,900 & 16,750 \\ \hline \text { Job B86 } & 12,750 & ? \\ \hline \text { General Use } & ? & 4,500 \\ \hline & \$ 58,250 & ? \\ \hline \end{array} Overhead is applied based upon direct labor cost.Jobs B81,B83,and B84 were for 8,000,6,000 and 4,800 units of product,respectively,and were completed during October.Jobs B80,B81,B82,and B83 were sold on account for $150,000.Required: Prepare T-accounts for a job order cost system,posting the beginning balances and all transactions for the month.Clearly indicate the ending balances for the accounts and label the 'cost of goods manufactured' and 'cost of goods sold' amounts.$
During October,the following costs were incurred on account:
$\begin{array} { | l | r | } \hline \text { Materials } & \$ 46,500 \\\hline \text { Factory labor } & 49,000 \\\hline \text { Manufacturing owerhead } & 56,350 \\\hline\end{array}$
A summary of the materials requisition slips and the labor time tickets for the month revealed the following distribution:
$\begin{array} { | l | r | r | } \hline \text { Applicable To } & \text { Materials Pequisitions } & \text { Time Tickets } \\\hline \text { Job B81 } & \$ 8,000 & \$ 4,000 \\\hline \text { Job B83 } & 5,100 & 1,700 \\\hline \text { Job B84 } & 8,600 & 10,500 \\\hline \text { Job B85 } & 19,900 & 16,750 \\\hline \text { Job B86 } & 12,750 & ? \\\hline \text { General Use } & ? & 4,500 \\\hline & \$ 58,250 & ? \\\hline\end{array}$
Overhead is applied based upon direct labor cost.Jobs B81,B83,and B84 were for 8,000,6,000 and 4,800 units of product,respectively,and were completed during October.Jobs B80,B81,B82,and B83 were sold on account for $150,000.Required:
Prepare T-accounts for a job order cost system,posting the beginning balances and all transactions for the month.Clearly indicate the ending balances for the accounts and label the 'cost of goods manufactured' and 'cost of goods sold' amounts.

Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Replication

The process of duplicating an experiment or study's procedure to verify its results and ensure its reliability and validity.

Laboratory Experiment

A research method in which variables are controlled and manipulated in a lab setting to observe their effect on other variables, allowing for high levels of control and precision.

Quantitative Research

A research method focused on obtaining data through measurable, numerical information and statistical analysis to understand patterns and relationships.