Reference no: EM132649248

The Pullman Inc, a segment of Sysco Holdings manufactures chain hoists. The raw materials inventories on hand on October 1 were as follows:

The balances in the ledger accounts on October 1 were as follows:

Transactions during October were as follows:

A. Payroll recorded during the month: direct labor, $28,000; indirect labor, $3,000.
B. Factory supplies purchased for cash, $1,000. (Use a separate inventory account, Factory Supplies.)
C. Materials purchased on account: chain-4,000 lb, $8,800; pulleys-2,000 sets, $10,200; steel plates-5,000 units, $3,000.
D. Sales on account for the month, $126,375.
E. Accounts receivable collected, $72,500.
F. Materials used during October (FIFO costing): chain, 14,000 lb; pulleys, 4,400 sets; bolts and taps, 4,000 lb; steel plates, 3,800 units.
G. Payroll paid, $31,000.
H. Factory supplies on hand, October 31, $350.
I. Factory heat, light, and power costs for October, $3,000 (not yet paid).
J. Office salaries paid, $6,000.
K. Advertising paid, $2,000.
L. Factory superintendence paid, $1,800.
M. Expired insurance-on office equipment, $100; on factory machinery, $300.
N. Factory rent paid, $2,000.
O. Depreciation on office equipment, $400; on office furniture, $180; on machinery, $1,200.
P. Factory overhead charged to jobs, $11,950.
Q. Work in Process, October 31, $31,000.
R. Cost of goods sold during the month, $84,250.
S. Accounts payable paid, $33,750.

Question 1. Post the journal entries to the accounts, setting up any new ledger accounts necessary. Only controlling accounts are to be maintained; however, show the calculation for the cost of materials used. - Does this mean need to update T-accounts? What else would need to do?

Question 2. Prepare statement of cost of goods manufactured for October.