Question

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

a-g

a. Raw materials purchased on account $ 84,000 . b. Direct materials used in production , $38,000. Indirect materials used in production, $13,500 . c. Pald cash for factory payroll 45,000. Of this total$ 31,000 is for direct labor and $14,000 is for indirect labor . d. Paid cash for other actual overhead costs , $7,250. e. Applied overhead at the rate of 120 % of direct labor cost. f. Transferred cost of jobs completed to finished goods, $58,500 . Sold jobs on account for $84,000. The jobs had a cost of $58,500.

Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $84,000. b. Direct materials used in production, $38,000. Indirect materials used in production, $13,500. c. Paid cash for factory payroll, $45,000. Or this total, $31,000 is for direct labor and $14,000 is for indirect labor. d. Paid cash for other actual overhead costs, $7,250. e. Applied overhead at the rate of 120% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $58,500. g. Sold jobs on account for $84,000. The jobs had a cost of $58,500. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 Record raw materials purchased on account Note: debite before credits Transaction General Journal Debit Credit Record entr Clear entry View general lournal < Prev 1 of 5 !!! Next >

Answer 1

		Debit	Credit
a	Raw materials inventory	84000
	Accounts payable		84000
b1	Work in process inventory	38000
	Raw materials inventory		38000
b2	Factory overhead	13500
	Raw materials inventory		13500
c	Work in process inventory	31000
	Factory overhead	14000
	Cash		45000
d	Factory overhead	7250
	Cash		7250
e	Work in process inventory	37200		=31000*120%
	Factory overhead		37200
f	Finished goods inventory	58500
	Work in process inventory		58500
g1	Cost of goods sold	58500
	Finished goods inventory		58500
g2	Accounts Receivable	84000
	Sales		84000