Concord Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since...

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Concord Corp. designs and manufactures mascot uniforms for highschool, college, and professional sports teams. Since each team’suniform is unique in color and design, Concord uses a job ordercosting system. On January 1, the T-accounts for some of Concord’sprimary balance sheet accounts were as follows:
Raw Materials Inventory Work in Process Inventory
Beg. 16,000 Beg. 30,200
Finished Goods Inventory Cash
Beg. 23,400 Beg. 47,000
Accounts Receivable Accounts Payable
Beg. 62,300 Beg. 42,500
During the year, the following events occurred:
1. Concord purchased raw materials costing $83,000 onaccount.
2. Concord used $93,000 of raw materials in production. Of these,70% were classified as direct materials and 30% as indirectmaterials. (Concord maintains a single Raw Materials Inventoryaccount.)
3. Concord used 33,300 hours of direct labor. The company’saverage direct labor rate was $7.50 per hour (credit WagesPayable).
4. The company’s only indirect labor cost was the salary of asecurity guard hired to watch the company’s shop after hours. Theguard’s annual salary was $26,200 (credit Wages Payable).
5. Other manufacturing overhead costs the company incurred onaccount totaled $69,600.
6. Concord applied $134,000 in manufacturing overhead.
7. The company completed production of goods costing$325,000.
8. The company’s Cost of Goods Sold balance was $303,750 beforeadjusting for over- or underapplied overhead.
9. Sales revenue was $444,000 (all sales were made onaccount).
10. Concord collected $428,000 from customers.
11. The company paid accounts payable of $107,000.
12.
At year-end, all wages earned during the year had been paid.
Record the transactions above in the appropriate T-accounts andcalculate ending balances. (Post entries in orderpresented in the problem.)

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Solution:

Raw materials inventory
Event	Debit	Event	Credit
Beg.	$16,000.00	2	$93,000.00
1	$83,000.00	End	$6,000.00

Total	$99,000.00	Total	$99,000.00

Work In Process Inventory
Event	Debit	Event	Credit
Beg.	$30,200.00	7	$325,000.00
2	$65,100.00	End	$154,050.00
3	$249,750.00
6	$134,000.00

Total	$479,050.00	Total	$479,050.00

Finished goods inventory
Event	Debit	Event	Credit
Beg.	$23,400.00	8	$303,750.00
7	$325,000.00	End	$44,650.00

Total	$348,400.00	Total	$348,400.00

Cost of goods sold
Event	Debit	Event	Credit
8	$303,750.00	End Bal	$303,750.00

Total	$303,750.00	Total	$303,750.00

Manufacturing overhead
Event	Debit	Event	Credit
2	$27,900.00	6	$134,000.00
4	$26,200.00
5	$69,600.00
End	$10,300.00

Total	$134,000.00	Total	$134,000.00

Sales Revenue
Event	Debit	Event	Credit
End	$444,000.00	9	$444,000.00

Total	$444,000.00	Total	$444,000.00

Cash
Event	Debit	Event	Credit
Beg	$47,000.00	11	$107,000.00
10	$428,000.00	12	$275,950.00
		End	$92,050.00



Total	$475,000.00	Total	$475,000.00

Accounts Payable
Event	Debit	Event	Credit
11	$107,000.00	Beg	$42,500.00
End	$88,100.00	1	$83,000.00
		5	$69,600.00

Total	$195,100.00	Total	$195,100.00

Accounts Receivables
Event	Debit	Event	Credit
Beg	$62,300.00	10	$428,000.00
9	$444,000.00	End	$78,300.00


Total	$506,300.00	Total	$506,300.00

Wages Payable
Event	Debit	Event	Credit
12	$275,950.00	3	$249,750.00
		4	$26,200.00


Total	$275,950.00	Total	$275,950.00

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Transcribed Image Text

Concord Corp. designs and manufactures mascot uniforms for highschool, college, and professional sports teams. Since each team’suniform is unique in color and design, Concord uses a job ordercosting system. On January 1, the T-accounts for some of Concord’sprimary balance sheet accounts were as follows:Raw Materials InventoryWork in Process InventoryBeg.16,000Beg.30,200Finished Goods InventoryCashBeg.23,400Beg.47,000Accounts ReceivableAccounts PayableBeg.62,300Beg.42,500During the year, the following events occurred:1.Concord purchased raw materials costing $83,000 onaccount.2.Concord used $93,000 of raw materials in production. Of these,70% were classified as direct materials and 30% as indirectmaterials. (Concord maintains a single Raw Materials Inventoryaccount.)3.Concord used 33,300 hours of direct labor. The company’saverage direct labor rate was $7.50 per hour (credit WagesPayable).4.The company’s only indirect labor cost was the salary of asecurity guard hired to watch the company’s shop after hours. Theguard’s annual salary was $26,200 (credit Wages Payable).5.Other manufacturing overhead costs the company incurred onaccount totaled $69,600.6.Concord applied $134,000 in manufacturing overhead.7.The company completed production of goods costing$325,000.8.The company’s Cost of Goods Sold balance was $303,750 beforeadjusting for over- or underapplied overhead.9.Sales revenue was $444,000 (all sales were made onaccount).10.Concord collected $428,000 from customers.11.The company paid accounts payable of $107,000.12.At year-end, all wages earned during the year had been paid.Record the transactions above in the appropriate T-accounts andcalculate ending balances. (Post entries in orderpresented in the problem.)

1.	Concord purchased raw materials costing $83,000 onaccount.
2.	Concord used $93,000 of raw materials in production. Of these,70% were classified as direct materials and 30% as indirectmaterials. (Concord maintains a single Raw Materials Inventoryaccount.)
3.	Concord used 33,300 hours of direct labor. The company’saverage direct labor rate was $7.50 per hour (credit WagesPayable).
4.	The company’s only indirect labor cost was the salary of asecurity guard hired to watch the company’s shop after hours. Theguard’s annual salary was $26,200 (credit Wages Payable).
5.	Other manufacturing overhead costs the company incurred onaccount totaled $69,600.
6.	Concord applied $134,000 in manufacturing overhead.
7.	The company completed production of goods costing$325,000.
8.	The company’s Cost of Goods Sold balance was $303,750 beforeadjusting for over- or underapplied overhead.
9.	Sales revenue was $444,000 (all sales were made onaccount).
10.	Concord collected $428,000 from customers.
11.	The company paid accounts payable of $107,000.
12.	At year-end, all wages earned during the year had been paid. Record the transactions above in the appropriate T-accounts andcalculate ending balances. (Post entries in orderpresented in the problem.)