Need Homework help

JOB ORDER COSTING: Radical Jets produces and sells custom built jets for corporate and personal use. The following information was found in the general ledger:

Account

Materials inventory

Goods in process

Finished Goods

. Current jobs:

Job No.

2145

2L46

2t47

2L48

2L50

lndirect

Totals

Beginning Balance

Sso,ooo

s200,a00

$32s,ooo

Direct Labor

512,o0o

Slo,ooo

s9,oo0

57,500

s7,000

S3,600

Direct Materials

S9,ooo

$8,ooo

57,soo

S6,000

s5,oo0

54,300

Factory Overhead

Total Costs

Factory overhead is applied based on direct labor costs. The company estimates that factory overhead is S136,500.

. Required:

1,. Record the entry for the purchase of 534,000 in materials on account. 2. Record the entry for the requisition of materials 3. Record the entry for labor 4. Record the application of factory overhead 5. Record the completion of jobs: 2145,2L46, and 21,47. 6. Record the sale ofjob 2145 for 550,000. 7. What are the ending balances for the three inventory accounts?

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CHAPTER 12 HOMEI,\IORK

Kazaam Company, a merchandiser, recently condeted its calendar-year2011 operations. For he year. (1) all sales are credit sales, (2) all credits to Accounts Receiiable reflect cash receipts fom custonrers, (3) all purchases of inwnlory are on credil, (4) all debits to Accounts Payable reiect cash paymenls for inwntory, and {5) Olhil Expenses are paid in adraance and are initially dabited to Prepaid Expenses. The company's balance sheels and income statement bllolil.

9.

KAZAAM COMPAT.IY Comparatir,e Balance Sheets December 31, 2011 and 2010

Assets Cash S Accounts receirable Merchandise inrrentory Prepakl expenses Equipment Accurn. dspraciation-E quiprnent

Total assets

Liabili6es and Equity Accounts payable Short-term notes payable Longterm notes payabls Comnron stock, $5 par \6luB Paid-in capital in excass of par, common stock Retained earnings

Total liabilities and equity

2011 2010

49,800 S 73,000 65,860 54,000

277,540 252,500 1,000 1,800

157,500 1m,500 (41,750] 152,ffi0',)

$ 509,910 5435,800

$ 66,485 $ 114,000 9,000 7.000

62,500 49,000 162,250 150,500 35,250 0

174.425 115.300

$ 509,910 S435,800

KAZAAM COMPANY klcome Statement

For Year Ended December 31, 201 1 Sales Cost ofgoods sold

Gross profit Op€rating expenses

Depr€ciation expense Other expenses

Other gains (lossesf Loss on sale of equipment

lncome bebre taxes lncome taxes expense

N€t income g 111,425

Additional hformation on Year 2011 fransac!'ons. a. The loss on the cash sale ofequipme0t.was gS,t2S (details in b). b. sold equipment costing $46,875; with accumulated depreciation of $3o,250, br $11,s@ cash_ c. Purchased equiprnent costing $97,875 by paying 530,@0 cash and signing a long-term note payable for

the balance. d. Borrowed $2,000 cash by signing a slmrt-term note payable_ e. Paid 554,375 cash to reduce the long-tern notes payable, f. lssued 2,350 shares of common stock frr $20 cash per share. g. Declare,d and paid cash djvidends of 952,300_

Requiredl Prcpare a complete statern€nt of cash flovrrs using a spreadsheet report its operating actilities using the indirect r$[Dpd. (Leave no cells blank - be certain to anter "0" wherever requireo. Omit tha "S" srgn tn your response.)

a. Net income was 5111,425. b. Accounts recehrablG increased

s 583,000 289,000

294,000

$ 20,000 133,200 153,200

5.125

r35,675 24.250

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