Preparing comprehensive accounting for manufacturing transactions Teacher Stars produces stars…

 Preparing comprehensive accounting for manufacturing transactions Teacher Stars produces stars for elementary teachers to reward their students. Teacher Stars’ trial balance on June 1 follows:

June 1 balances in the subsidiary ledgers were as follows:

• Raw Materials Inventory subsidiary ledger: Paper, $4,300; indirect materials, $1,300

• Work-in-Process Inventory subsidiary ledger: Job 120, $42,500; Job 12, $0

 • Finished Goods Inventory subsidiary ledger: Large Stars, $9,700; Small Stars, $11,000 June transactions are summarized as follows:

 a. Collections on account, $153,000.

b. Selling and administrative expenses incurred and paid, $32,000.

c. Payments on account, $42,000.

 d. Materials purchased on account: Paper, $24,500; indirect materials, $4,300.

e. Materials requisitioned and used in production:

f. Wages incurred during June, $38,000. Labour time records for the month: Job 120, $3,700; Job 121, $18,300; indirect labour, $16,000.

g. Wages paid in June include the balance in the Wages Payable at May 31 plus $34,900 of wages incurred during June.

 h. Depreciation on plant and equipment, $2,800.

 I. Manufacturing overhead allocated at the predetermined overhead allocation rate of 90% of direct labour cost.

 j. Jobs completed during the month: Job 120 with 800,000 Large Stars at a total cost of $50,330.

k. Sales on account: all of Job 120 for $111,000.

 l. Adjusted for overallocated or under allocated manufacturing overhead.

Requirements

1. Journalize the transactions for the company.

2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process subsidiary ledger, and the Finished Goods Inventory subsid-airy ledger have been opened for your account’s balance as given. Post the journal entries to the T-accounts using the transaction letter.

3. Prepare a trial balance at June 30, 2016.

 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.

5. Prepare an income statement for the month of June.