School Stars produces stars for elementary teachers to reward their students

Price: $3.99


P17-33B Comprehensive accounting for manufacturing transactions [90–120 min]

School Stars produces stars for elementary teachers to reward their students. School Stars’ trial balance on June 1 follows:

SCHOOL STARS  Trial Balance  June 1, 2012
			Balance
		Account Title	Debit	Credit
		Cash	$ 17,000
		Accounts receivable	170,000
		Inventories:
		Materials	6,200
		Work in process	43,000
		Finished goods	21,300
		Plant assets	250,000
		Accumulated depreciation		$ 71,000
		Accounts payable		133,000
		Wages payable		3,300
		Common stock		144,000
		Retained earnings		156,200
		Sales revenue	—	—
		Cost of goods sold	—
		Manufacturing overhead	—
		Marketing and general expenses	—
		Total	$507,500	$507,500

June 1 balances in the subsidiary ledgers were as follows:
• Materials subledger: $4,300 paper and $1,900 indirect materials
• Work in process subledger: Job 120 $43,000; $0 for Job 121
• Finished goods subledger: $9,300 Large Stars and $12,000 Small Stars

and so on ....