CASH 475000 ACCOUNTS RECEIVABLE 75000 ALLOW FOR UNCOLLECTIBLE ACCTS 5000 NOT

CASH 475000
ACCOUNTS RECEIVABLE 75000
ALLOW FOR UNCOLLECTIBLE ACCTS 5000
NOTES RECEIVABLE 200000
RAW MATERIALS 50000
WORK IN PROCESS PEGASUS 25000
WORK IN PROCESS CERBERUS 65000
WORK IN PROCESS ACHILLES 10000
FINISHED GOODS 75000
MOLDING MACHINES 1000000
ACCUMULATED DEP(100K/YEAR) 491667
OFFICE FURNITURE/EQUIPMENT 75000
ACCUMULATED DEP(5K/YEAR) 14583
PATENTS 25000
ACCOUNTS PAYABLE 125000
NOTES PAYABLE 25000
COMMON STOCK 600000
RETAINED EARNINGS 813750 TOTALS $2075000 $2075000 TRANSACTIONS FOR THE MONTH OF JUNE:
1) PURCHASED RAW MATERIALS (CEMENT DYES STONES) TOTALING $350000.
2) REQUISITIONED INTO PRODUCTION IN MONTH OF JUNE: $350000.
3) 2 JOBS FINISHED IN JUNE:
A) PRODUCTION OF 400 PEGASUS STATUES (PRICE: $750/EACH) COSTS:
1) RAW MATERIALS USED: $125000 IN RAW MATERIALS.
2) DIRECT LABOR COSTS: ACTUAL HOURS WORKED ON THIS JOB: 1900. AVERAGE COST PER HOUR: $20
3. OVERHEAD: THE COMPANY USES A PREDETERMINED OVERHEAD RATE BASED ON DIRECT LABOR HOURS CALCULATED AT THE BEGINNING OF THE FISCAL YEAR. THE TOTAL OVERHEAD
ESTIMATED AT THE BEGINNING OF THE YEAR WAS $2000000. THE COMPANY ESTIMATED IT WOULD USE 50000 HOURS OF DIRECT LABOR FOR YEAR. YOU WILL NEED TO A) PREPARE THE JOURNAL ENTRIES TO RECORD THE TRANSACTIONS FOR THE MONTH INCLUDING THE FLOW OF INVENTORY AND APPLIED OVERHEAD.