Question

Exercise 175 (Part Level Submission) The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2017: Beginning Ending Inventories: Ra maials Work in process Finished goods $17,000 $19,000 9,000 14,000 11,000 8,000 $37,000 $41,000 In addition, the following transactions occurred in 2017: . Raw materials purchased on account, $75,000 2. Incurred factory labor, $80,000, all is direct labor. (Credit Factory Wages Payable) 3. Incurred the following overhead costs during the year: Utilities $6,800, Depreciation on manufacturing machinery $8,000, Manufacturing machinery repairs $9,200, Factory insurance $9,000 (Credit Accounts Payable and Accumulated Depreciation) Assigned $80,000 of factory labor to jobs. Applied $36,000 of overhead to jobs. 4. 5.

Answer 1

	Particulars			Debit	credit
1	Purchases Account Dr			75000
	To Supplier A/C				75000
	(Being RAW material purchased)
2	Factory labour Expenses Dr			80000
	To factory wages payable A/C				80000
	(being labour cost incurred)
3	Utilities A/C Dr			6800
	Depreciation on machinery Dr			8000
	Machine repair Dr			9200
	Factory insurance Dr			9000
	To Accounts payable				25000
	ToAccumulated Depreciation				8000
	(being different overheads incurred & Depreciation charged)
4	WIP inventory Dr			80000
	TO factory labour expnese A/c				80000
	( being labour cost assigned to job)
5	WIP inventory Dr			36000
	To overhead payable A/c				36000
	(Being various overheads assigned to a job)