Accounting
Rosie Learns, Inc produces educational robotic toys for primary school aged children. Rosie Learns sells interactive robotic education toys to schools around the world. On December 31 Rosie Learns has the following trial balance and account balance information:
Rosie Learns
Trial Balance
December 31, 2018
Balance
Account Debit Credit
Cash 25,000
Accounts Receivable 190,000
Inventories:
Raw Materials 6,300
Work-in-Process 39,400
Finished Goods 21,300
Property, Plant, and Equipment 270,000
Accumulated Depreciation 71,000
Accounts Payable 129,000
Wages Payable 1,800
Common Stock 138,000
Retained Earnings 212,200
Sales Revenue 0
Cost of Goods Sold 0
Manufacturing Overhead 0
Selling and Administrative Expenses 0
Totals 552,000 552,000
Additional information as of December 31
Raw Materials Inventory subsidiary ledger: $5,000
Indirect materials $1,300
Work-in-Process Inventory subsidiary ledger
Job 114 $39,400
Job 115 $0
Finished Goods Inventory subsidiary ledger:
Rosie V $9,900
Rosie X $11,400
December collections on account $151,000
Selling and administrative expenses incurred and paid $32,000
Payments on account $35,000
Materials purchases on account
Raw Materials $25,500
Indirect materials, $4,100
Materials requisitioned and used in production:
Job 114 $800
Job 115 $7,900
Indirect materials, $1,700
Wages incurred during December $40,000
Labor time records for the month
Job 114, $3,800
Job 115 $18,800
Indirect labor $17,400
Wages paid in December include the balance in Wages Payable at May 31 plus $37,200 of wages incurred during December
Plant and Equipment depreciation $3,100
Manufacturing Overhead (MOH) allocated at the predetermined overhead allocation rate of 50% of direct labor cost.
Jobs completed during the month: Job 114 with 700,000 Roxie V Robots at a total cost of $45,900
Sales on account Job 114 for $114,000
Adjusted for over-allocated or under-allocated manufacturing overhead.
Requirements:
Journalize the transactions for the company
Open T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger. Insert each account balance as given, and use the reference Bal. Post the journal entries to the T-Accounts using the transaction letters as a reference.
Prepare a trial balance at December 31, 2018
Use the Work-in Process Inventory T-accounts to prepare a schedule of cost of goods manufactured for the month of December
Prepare an income statement for the month of December.