Question

Conundrum Corporation manufactures furniture. Due to a fire in the administrative offices, the accounting records for November of the current year were partially destroyed. You have been able to piece together the following information from the ledger. Raw-Material Inventory 40, 80e Bal. 11/30 45,000 Accounts Payable 12, eee Bal. 10/31 Work-in-Process Inventory Bal. 10/31 8,000 Finished-Goods Inventory Bal. 10/31 35,000 Manufacturing Overhead 60.ae Cost of Goods Sold Wages Payable 1,700 Bal 11/30 Sales Revenue Accounts Receivable Bal. 10/31 8,00 Upon examining various source documents and interviewing several employees, you were able to gather the following additional information. a. Collections of accounts receivable during November amounted to $205.000. b. Sales revenue in November was 120 percent of cost of goods sold. All sales are on account. c. Overhead is applied using an annual predetermined overhead rate using direct-labor hours (based on practical capacity). d. The budgeted overhead for the current year is $720.000. e. Budgeted direct-labor cost for the current year is $960.000. The direct-labor rate is $20 per hour. f. The accounts payable balance on November 30 was $1.000. Only purchases of raw material are credited to accounts payable. A payment of $81,000 was made on November 15. 9. November's cost of goods sold amounted to $180.000. h. The November 30 balance in finished-goods inventory was $5.250. i. Payments of $79.500 were made to direct-labor employees during November. The October 31 balance in the Wages Payable account was $1.000. j. The actual manufacturing overhead for November was $60.000. k. An analysis of the furniture still in process on November 30 revealed that so far these items have required 500 hours of direct labor and $20.600 of direct material.

Answer 1

1	Sales revenue for November					216000
2	november 30 balance in accounts receivable					19,000
3	Cost of raw material purchased during November					70,000
4	November 30 balance in work in process inventory					38100
5	Direct labor added to work in process during November					80,200
6	Applied overhead for November					60,150
7	Cost of goods completed during November					150,250
8	Raw material used during november					40,000
9	october 31 balance in raw materials inventory					15,000
10	overapplied or underapplied overhead for November					0
	Raw materials inventory					Accounts payable
	Bal 10/31	15,000				bal 10/31		12,000
		70,000	40,000			f.	81,000	70,000
	bal 11/30	45,000				Bal 11/30	1,000
	work in process inventory					Finished -goods inventory
	Bal 10/31	8,000				bal 10/31	35,000
	DM	40,000	150,250				150,250	180,000	g.
	DL	80,200
	OH	60,150
						Bal 11/30	5,250
	bal 11/30	38100
	Manufacturing overhead					Cost of goods sold
	j	60,000				g.	180,000
		60,000
	Wages payable					Sales revenue
	Bal 10/31		1,000					216000	b
	i	79,500	80,200
	Bal 11/30		1,700
	Accounts receivable
	Bal 10/31	8,000
	b.	216000	205,000	a.
	Bal 11/30	19,000