Question

Prepare summary journal entries to record the following transactions for a company in its first month of operations, a. Raw materials purchased on account, $116,000. b. Direct materials used in production, $46,000. Indirect materials used in production, $20,600. c. Paid cash for factory payroll, $55,000. Of this total, $41,000 is for direct labor and $14,000 is for indirect labor. d. Paid cash for other actual overhead costs, $9.250. e. Applied overhead at the rate of 120% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $85,600 9. Sold jobs on account for $123,000 g(2). The jobs had a cost of $85,600 (1) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 ences Record raw materials purchased on account Note: Enter debits before credits Transaction General Journal Deth Credit

Answer 1

Transaction Credit 116,000 $ 46,000 20,600 55,000 General Journal Raw Materials Inventory Accounts Payable Work in Process Inventory Raw Materials Inventory Factory Overhead Raw Materials Inventory Work in Process Inventory Factory Overhead Cash Factory Overhead Cash Work in Process Inventory (120% * $41,000) Factory Overhead Finished Goods Inventory Work in Process Inventory Cost of Goods Sold Finished Goods Inventory Accounts Receivable Sales Debit 116,000 $ 46,000 $ 20,600 | $ 41,000 14,000 $ 9,250 $ 49,200 $ 85,600 $ 85,600 $ 123,000 $ 9,250 $ 49,200 $ 85,600 $ 85,600 123,000