Question

Journal Entries
Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Paulson's transactions during July 2016

July 5	Received material costing $3,000 from a supplier. The material was purchased on account.
9	Requisitioned $9,000 of material for use in the factory, consisting of $7,500 of direct material and $1,500 of indirect material.
11	Recorded the factory payroll: $20,250 of direct labor and $2,250 of indirect labor.
17	Incurred various overhead costs totaling $21,000. (Credit Accounts Payable.)
20	Applied $30,000 of manufacturing overhead to the products being manufactured.
23	Completed product costing $24,000 and moved it to the warehouse.
26	Sold goods with a product cost of $4,500 on account for $7,500.

a. and b. Record the transactions listed above in general journal form, post relevant portions to the four T‑accounts set-up below, and balance the four accounts.

General Journal
Date	Description	Debit	Credit
July 5	Answer	Answer	Answer
	Answer	Answer	Answer
July 9	Work in process inventory	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
July 11	Work in process inventory	Answer	Answer
	Answer	Answer	Answer
	Answer	Answer	Answer
July 17	Answer	Answer	Answer
	Answer	Answer	Answer
July 20	Answer	Answer	Answer
	Answer	Answer	Answer
July 23	Answer	Answer	Answer
	Answer	Answer	Answer
July 26	Answer	Answer	Answer
	Answer	Answer	Answer
	To record cost of goods sold.
July 26	Answer	Answer	Answer
	Answer	Answer	Answer
	To record sale of product.

For T-accounts, enter transactions in order of occurrence using the first available answer box in the appropriate debit or credit column.

Materials Inventory
Bal.	10,500	Answer
	Answer	Answer
Bal.	Answer	Answer

Work in Process Inventory
Bal.	37,500	Answer
	Answer	Answer
	Answer	Answer
	Answer	Answer
Bal.	Answer	Answer

Finished Goods Inventory
Bal.	15,000	Answer
	Answer	Answer
Bal.	Answer	Answer

Cost of Goods Sold
Bal.	45,000	Answer
	Answer	Answer
Bal.	Answer	Answer

Answer 1

1) journal entries

Date	particular	Debit ($)	credit ($)
July 5	Raw material inventory	3000
	Accounts payable		3000
July 9	work in process	7500
	Manufacturing overhead	1500
	Raw material inventory		9000
July 11	work in process	20250
	Manufacturing overhead	2250
	Wages payable		22500
July 17	Manufacturing overhead	21000
	Accounts payable		21000
July 20	work in process	30000
	Manufacturing overhead		30000
July 23	finished goods	24000
	Work in process		24000
July 26	cost of goods sold	7500
	Finished goods		7500
July 26	accounts receivable	4500
	Sales		4500

2) T accounts

   RAW MATERIAL inventory

Beginning balance	10500	work in process	7500
Accounts payable	3000	Manufacturing overhead	1500
		Balance	4500

   Work in process

Beginning balance	37500	finished goods	24000
Raw material inventory	7500
Wages payable	20250
Manufacturing overhead	30000	balance	71250

finished goods INVENTORY

Beginning balance	15000	cost of goods sold	7500
Work in process	24000	balance	31500

Cost of goods sold

Beginning balance	45000
Finished goods	7500	balance	52500

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