Lane confectioners produces special orders of sugar candies

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Reference no: EM13585613

Lane Confectioners produces special orders of sugar candies and chocolates for airlines and hotels. During March, Lane purchased, on credit, 2,060 pounds of confectioners sugar at $0.70 per pound, 2,270 pounds of granulated sugar at $0.80 per pound, 840 pounds of chocolate at $4.00 per pound, and 230 pounds of caramel at $1.50 per pound from Seattle Confectionery Supply. In addition, it purchased for cash 60 dozen eggs at $0.85 per dozen and 70 pounds of paraffin at $0.50 per pound from PMG Foods. The beginning balances in the inventory accounts were: Raw Materials Inventory $2,485 Work in Process Inventory 6,487 Finished Goods Inventory 8,997 The ending balances in the inventory accounts were: Raw Materials Inventory $3,517 Work in Process Inventory 4,982 Finished Goods Inventory 5,987 Direct labor costs were $4,100 for 410 hours, indirect labor costs were $2,520, utilities were $403, rent was $745, and other overhead costs totaled $4,978 (use Accounts Payable). Manufacturing overhead is applied at $17 per direct labor hour. Sales during the month were $35,500, and selling and administration expenses were $9,006. (Assume that all of the above were noncash transactions.) Prepare journal entries to record the transactions for the month of March. Assume that over or underapplied overhead is closed to Cost of Goods Sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

1. (To record purchase of sugar, chocolate, caramel, eggs, & paraffin)

2. (To record direct labor expenses incurred)

3. (To record indirect labor expenses incurred)

4. (To record overhead costs incurred)

5. (To record raw materials used)

6. (To record overhead cost applied to jobs)

7. (To record production of finished goods

8. (To record sales)

9. (To record nonmanufacturing expenses incurred)

10. (To record cost of sales)

11. (To record allocation of underapplied overhead to CGS) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare an income statement for the month of March. Lane Confectioners Income Statement for the Month of March $ $

Reference no: EM13585613

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