3) The controller would like you to prepare a draft of the company's income statement. In addition, she would like to see the sales price per unit, cost per unit, and gross profit per unit. Hint: See general ledger for the information about transactions that occurred during the month. Make sure you format everything in dollars and cents.
May General Journal Entries- Partial list
WIP-Blending Wages Payable (to record DL traced to the Blending Dept)
$45,000
WIP-Blending Raw materials inventory (to record DM traced to the Blending Dept)
$1,153,750
WIP-Blending MOH (to record MOH allocated to the Blending Dept)
$617,600
Asset and Expense accounts are increased
Liabilities and Revenue accounts are increased
WIP-Forming Wages Payable (to record DL traced to the Forming Dept)
$750,000
WIP-Forming Raw materials inventory (to record DM traced to the Forming Dept)
$45,000
WIP-Forming MOH-Forming (to record MOH allocated to the Forming Dept)
$617,600
Salary Expense Wages Payable (to record salaries and wages of selling, general and admin. staff)
$275,000
Rent Expense Rent Payable (to record monthly rent)
$25,000
Insurance Expense Prepaid Insurance (to record Insurance on selling, general, and admin. Building)
$30,000
Accounts Receivable Sales Revenue (to record the sale of 180,000 units at a price of $20 per unit)
$3,600,000
Utilities Expense Utilities Payable (to record Insurance on selling, general, and admin. Building)
$10,000
Advertising expense Accounts Payable (to record advertising expenses)
$120,000
