The Accounts and the Adjusted Trial Balance Section of Spencer

question 55

Essay

The accounts and the Adjusted Trial Balance section of Spencer Manufacturing's worksheet are given below. Instructions:
(1) Enter the account names in the Account Name column and the adjusted trial balance in the Adjusted Trial Balance columns of a 12-column manufacturing worksheet. Or use a 10-column worksheet and use the last four columns, changing the column headings as needed.
(2) Extend the balances to the appropriate columns and complete the worksheet for the year ended December 31, 2013.
(3) Record the closing entries for all revenue and expense accounts and the Manufacturing Summary account on page 9 of a general journal. Omit descriptions.

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Definitions:

Square Feet

A unit of area measurement equal to a square that is one foot on each side, commonly used in real estate and interior planning.

Indirect Materials

Materials used in the support of the production process that are not easily traced to specific products, essential for maintaining production equipment.

Favorable Variance

A financial term indicating that actual costs were less or actual revenues were more than what was budgeted or forecasted.

Variable Cost

Variable costs vary directly with the level of production output, including expenses like raw materials and direct labor.