Question

a. Purchased raw materials on credit. $240,000 b. Materials requisitions record use of the following materials for the month Job 136 Job 137 Job 138 Job 139 Job 140 Total direct Baterials Indirect materials Total materials used $ 49,500 33,500 19,400 22,800 7,200 132,400 20,000 $152,400 c. Paid $15.750 cash to a computer consultant to reprogram factory equipment d. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total $ 12,000 10,500 37,500 39,400 3,200 102,600 27,000 $129,600 e. Applied overhead to Jobs 136, 138, and 139 Transferred Jobs 136, 138, and 139 to Finished Goods. 9. Sold Jobs 136 and 138 on credit at a total price of $525.000 n. The company incurred the following overhead costs during the month credit Prepaid insurance for expired factory insurance). Depreciation of factory $69.000 building Depreciation of factory equipment 36,500 Expired factory Insurance 11,000 Accrued property taxes 35,000 payable I. Appiled overhead at month-end to the Work in Process Inventory account Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost

Answer 1

Answer: No. Transaction Credit Debit 240,000 1 240.000 132.400 20,000 152.400 c. 15.750 15.750 General Journal Raw materials inventory Accounts payable [To record the material purchased on credit] Goods in process inventory Factory overhead Raw materials inventory [To record the use of materials] Factory overhead Cash [To record the cash payment for reprogram of Computer Equipment] Goods in process inventory Factory overhead Factory payroll |[To record the labor for the month] Factory payroll Cash |[To record the cash payment for wages] Goods in process inventory Factory overhead [To record the applied Overhead] 4 d. 102,600 27,000 129,600 d 129 600 129,600 e.(hint) 177,800 177.800

358.400 358,400 525.000 525,000 9 217.400 217.400 10 151,500 f. (hintl) Goods in process inventory Factory overhead [To record the transfer to Finished goods] g(1) Accounts receivable Sales [To record the sales] g(2). (hint) Cost of goods sold Finished goods inventory [To recor the cost of goods sold] i(1). Factory overhead Accum. depreciation-Factory building Accum. depreciation Factory equipment Prepaid insurance Property taxes payable [To record the overhead costs] i(2). Goods in process inventory Factory overhead [To record the work in Process Inventory] Workings: e. To apply overhead to jobs: [($12,000+ $37,500 + $39,400) x 200%) = $177.800 f. To record completion of jobs: ($85,500 + $131,900 + $141,000) = $358.400 g(2). To record cost of sales: (585,500 + $131,900) = $217,400 i(2). To apply overhead to jobs: [(S10,500+ $3,200) 200%] = $27,400 69,000 36,500 11,000 35.000 11 27.400 27.400