Lily New Company recorded the following transactions for the just completed month.
a. $86,000 in raw materials were purchased on account.
b. $84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials.
c. Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor.
d. Additional manufacturing overhead costs of $197,000 were incurred.

Post the above transactions to T-accounts.
Determine the cost of goods sold for the period. (This is the most important!!)

Question

contestada

Respuesta :

anthougo anthougo · Answer 1 · 2021-11-22T14:09:59+01:00

1. The transactions for the month will be posted to the T-accounts of Lily New Company as follows:

Raw Materials

Description Debit Credit

a. Accounts Payable $86,000

b. Work in Process $72,000

b. Manufacturing Overhead 12,000

Ending balance $2,000

Accounts Payable

Description Debit Credit

a. Raw materials $86,000

Work in Process

Description Debit Credit

b. Raw materials $84,000

c. Payroll Expenses 105,000

d. Overheads 212,000

Finished Goods Inventory $401,000

Manufacturing Overhead

Description Debit Credit

b. Raw materials $12,000

c. Payroll Expenses 3,000

d. Cash 197,000

Work in Process $212,000

b. The Cost of Goods Sold for the period is $401,000.

Data Analysis:

a. Raw materials $86,000 Accounts Payable $86,000

b. Work in Process $72,000 Manufacturing Overhead $12,000 Raw materials $84,000

c. Work in Process $105,000 Manufacturing Overhead $3,000 Payroll Expenses $108,000

d. Manufacturing Overhead $197,000 Cash $197,000

Thus, the cost of goods sold for the period is $401,000 based on the information supplied.

Learn more: https://brainly.com/question/18648409