Requirements
1. Journalize the transactions for the company. Howie uses a perpetual inventory system.
2. Open T-accounts for the general ledger, the Materials ledger, the Work in process ledger, and the finished goods ledger. Insert each account balance as given, and use the reference Bal. Post the journal entries to the T-accounts using the transaction letters as a reference.
3. Prepare a trial balance at June 30, 2012.
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. To calculate cost of goods sold, you may want to review (Hint: In transaction l, you closed any under/over allocated manufacturing overhead to Cost of goods sold. In the income statement, show this correction as an adjustment to Cost of goods sold.
If manufacturing overhead is under allocated, the adjustment will increase Cost of goods sold. If overhead is over allocated, the adjustment will decrease Cost of goods sold.)