Question

how do i calculate?

Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $102,000. b. Direct materials used in production, $42,500. Indirect materials used in production, $15,000. c. Paid cash for factory payroll, $55,000. Of this total, $37,000 is for direct labor and $18,000 is for indirect labor. d. Paid cash for other actual overhead costs, $8,375. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $72,600. g. Sold jobs on account for $104,000. The jobs had a cost of $72,600. View transaction list View journal entry worksheet General Journal Credit No 1 Transaction a. Debit 102,000 Raw materials inventory Accounts payable 102,000 b(1). 42,500 Raw materials inventory 42,500 b(2) 15,000 Factory overhead Raw materials inventory 15,000 4 C. 55,000 Accounts payable Cash 55,000 8,375 Work in process inventory Accounts payable 8,375 22,500 22,500 72,600 72,600 8 g(1). 104,000 Cost of goods sold Finished goods inventory 104,000 9 g(2) 72,600 72,600

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit (S) Credit (S) a $ 102,000.00 Raw Materials Inventory Accounts Payable (To record Raw materials inventory purchased on account) $ 102,000.00 $ 42,500.00 Work In Process Inventory Raw Materials Inventory (To record Raw materials used in production) $ 42,500.00 $ 15,000.00 Factory Overheads Raw Materials Inventory (To record indirect materials used in production) $ 15,000.00 $ $ 37,000.00 18,000.00 Work In Process Inventory Factory Overheads Cash (To record Direct and Indirect Labor used in Production) $ 55,000.00

$ 8,375.00 Factory Overheads Cash (To record other overheads paid) 8,375.00 $ 46,250.00 Work In Process Inventory ($37000x125%) Factory Overheads (To record Factory overheads applied) $ 46,250.00 $ 72,600.00 $ 72,600.00 Finished Goods Inventory Work In Process Inventory (To record transfer of completed job cost to finished goods inventory) g $ 104,000.00 Accounts Receivable Sales Revenue (To record Sales on Account) $ 104,000.00 72,600.00 Cost of Goods Sold Finished Goods Inventory (To record Cost of Goods Sold) 72,600.00