Question

Raw Materials 25,000 (b)280,000 Bal. Work in Process 10,000 (i) Bal 675,000 220,000 180,000 297,000 32,000 275,000 (b) Bal 20,000 Bal. Finished Goods 40,000 (j) Manufacturing Overhead 60,000 (h 297,000 72,000 13,000 57,000 88,000 Bal 700,000 (b) 675,000 Bal 15,000 (g Bal 7,000 Cost of Goods Sold 700,000 by $7,000 Manufacturing overhead is balance to Cost of Goods Sold would be: 290,000 for the year. The entry to close this Cost of goods sold Finished goods 700,000 700,000 Post the journal entry to Cost of Goods Sold and calculate the new ending balances in the accounts

Answer 1

Direct Material A/c Dr TO accounts Payable Material purchased 275000 Manufacturing overheads Incurred Indirect Material Other Cost Total Less: Absorbed Overabsorbed 275000 WIP A/cDr Manufacturing Overheads A/c Dr TO Raw Material A/c Material issued to Production and overheads 60000 230000 290000 297000 7000 220000 60000 280000 WIP A/C Dr 180000 Manufacturing overhead is incurred $290000. Absorbed by $ 297000, overabsorbed 7000 for the year To Direct Labour Cost 180000 Direct labor cost charged to production Manufacturing Overheads A/c Dr To Indirect labor and other overheads cost Details of the other cost charged to manufacturing overheads are not available therefore separate journal entry is not possible 230000 230000 Indirect labor and other overheads incurred WIP A/cDr TO Manufacturing Overheads 297000 297000 Manufacturing Overheads charged to WIP Finished Goods A/c Dr TO WIP A/C 675000 675000 Transferred to Finished Goods Cost of Goods sold A/C Dr. To Finished Goods A/C Cost of goods sold a/c charged for sold finished goods 700000 700000