my project 460983

fIGLEAF.COM

POST-CLOSING TRIAL BALANCE

MAY 31, 2005

CASH 475,000

ACCOUNTS RECEIVABLE 75,000

ALLOW FOR UNCOLLECTIBLE ACCTS 5,000

NOTES RECEIVABLE 200,000

RAW MATERIALS 50,000

WORK IN PROCESS, PEGASUS 25,000

WORK IN PROCESS, CERBERUS 65,000

WORK IN PROCESS, ACHILLES 10,000

FINISHED GOODS 75,000

MOLDING MACHINES 1,000,000

ACCUMULATED DEP(100K/YEAR) 491,667

OFFICE FURNITURE/EQUIPMENT 75,000

ACCUMULATED DEP(5K/YEAR) 14,583

PATENTS 25,000

ACCOUNTS PAYABLE 125,000

NOTES PAYABLE 25,000

COMMON STOCK 600,000

RETAINED EARNINGS 813,750

TOTALS $2,075,000 $2,075,000

TRANSACTIONS FOR THE MONTH OF JUNE:

1) PURCHASED RAW MATERIALS (CEMENT, DYES, STONES) TOTALING $350,000.

2) REQUISITIONED INTO PRODUCTION IN MONTH OF JUNE: $350,000.

3) 2 JOBS FINISHED IN JUNE:

A) PRODUCTION OF 400 PEGASUS STATUES (PRICE: $750/EACH) COSTS:

1) RAW MATERIALS USED: $125,000 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 $2,000,000. THE COMPANY ESTIMATED IT WOULD USE 50,000 HOURS OF DIRECT LABOR FOR YEAR.

ADDITIONAL DATA:

ACTUAL COSTS INCURRED IN THE MONTH OF JUNE:

1) RENT EXPENSE IS $10,000/MONTH. A??3 OF THIS IS FACTORY RENT.

2) UTILITY EXPENSE IS $4,250 FOR THE MONTH OF JUNE. $3,250 IS FOR FACTORY UTILITY COSTS; THE REMAINING IS FOR THE ADMINISTRATIVE OFFICES.

3) THE SALARIES FOR THE MONTH ARE $321,000. THIS INCLUDES: $96,000 INCURRED FOR DIRECT LABOR COSTS (ALREADY RECORDED); $125,000 FOR ADMINISTRATIVE AND SALES SALARIES; THE REMAINING IS FOR INDIRECT LABOR COSTS.

4) ALL DEPRECIATION ON THE MOLDING MACHINES IS A FACTORY EXPENSE.

5) 2/3 OF THE PROPERTY TAX EXPENSE IS LEVIED ON THE FACTORY; THE PROPERTY TAX ESTIMATED FOR EACH MONTH IS $4,000.

6) ADDITIONAL MISCELLANEOUS MANUFACTURING OVERHEAD AMOUNTED TO $70,000.

INFORMATION NECESSARY TO PREPARE ENTRIES:

ALL SALES ARE ON ACCOUNT.

ALL PURCHASES OF INVENTORYARE ON ACCOUNT.

ALL OTHER EXPENSES ARE PAID IN CASH.

DURING THE MONTH THE COMPANY PAID $125,000 ON ACCOUNT AND RECEIVED $75,000 ON ACCOUNT.

SALES FOR THE MONTH:

1) SOLD BEGINNING INVENTORY IN FINISHED GOODS FOR $150,000

2) SOLD ALL OF THE PEGASUS ORDER OF 400 STATUES ‘ PRICE $750 EACH.

REMAINING IN FINISHED GOODS INVENTORY: THE CERBERUS ORDER.

REMAINING IN WORK IN PROCESS INVENTORY: THE ACHILLES ORDER.

YOU WILL NEED TO A) PREPARE THE JOURNAL ENTRIES TO RECORD THE TRANSACTIONS FOR THE MONTH INCLUDING THE FLOW OF INVENTORY AND APPLIED OVERHEAD.