1. Sample Problems Exercise 28.1 and 28.2

2. Exercise 28.1 The following selected items appeared in the adjusted trial balance columns of the worksheet for Peyton Company on December 31, 2007. From this information, prepare the section of the statement of cost of goods manufactured relating to the cost of raw materials used.

3. PEYTON COMPANY Statement of Cost of Goods Manufactured (partial) Year ended December 31, 2007 Raw Materials Raw Materials inventory, Jan 150,000 Materials Purchases695,000 Freight-In 15,000 Delivered cost of purchases710,000 Less purchase Ret. & allowance 5,000 Net Purchases705,000 Total Materials Available755,000 Less Raw Materials Inventory, Dec 31 49,000 Raw Materials Used706,000

4. Exercise 28.2 Using the data from exercise 28.1, prepare the general journal entry to record adjustments for inventory accounts 2007Adjusting Entries Dec 31Manufacturing Summary50,000 Raw Materials Inventory50,000 31Raw Materials Inventory49,000 Manufacturing Summary49,000 31Manufacturing Summary85,000 Work in Process Inventory85,000 31Work in Process Inventory75,000 Manufacturing Summary75,000 31Income summary61,000 Finished goods inventory61,000 31Finished goods inventory59,000 Income Summary59,000