Question

question 5: Beemo Inc. sells video games and use normal job costing to track costs. During 2018, Beemo Inc. had the following transactions: a. Purchased $555,000 of materials on credit b. $624,300 of materials were used, with $520,400 being direct materials and the rest indirect materials C. $546,000 was paid to direct labor and $88,000 was paid to indirect labor d. During the year, $99,900 worth of other indirect costs were incurred, of which $9,500 came from depreciation. e. 42,980 direct labor hours were worked over the year. The budgeted MOH rate was calculated to be $7 per DLH. f. $1,267,470 worth of goods were completed during the year. 8 $1,524,550 worth of goods were sold during the year. Using this information please the Journal Entries for all the given transactions from 2018 Letter Account

Answer 1

Question 5:

Journal Entries:

Letter	Account	Debit	Credit
a)	Merchandise Inventory	$555,000
	Accounts Payable		$555,000
	(To record the purchase of merchandise inventory on credit)
b-1)	Work-in Process Inventory	$520,400
	Direct Materials		$520,400
	(To record the assigning of direct materials to production)
b-2)	Manufacturing Overheads	$103,900
	Indirect Materials ($624,300 - $520,400)		$103,900
	(To record the usage of indirect materials)
c-1)	Factory Labor ($546,000 + $88,000)	$634,000
	Cash		$634,000
	(To record the payment of factory labor)
c-2)	Work-in Process Inventory	$546,000
	Direct Labor		$546,000
	(To record the assigning of direct labor to production)
c-3)	Manufacturing Overheads	$88,000
	Indirect Labor		$88,000
	(To record the usage of indirect labor)
d-1)	Manufacturing Overheads	$99,900
	Factory Overheads		$99,900
	(To record assigning of factory overheads to production)
d-2)	Depreciation Expense	$9,500
	Accumulated Depreciation		$9,500
	(To record the depreciation expense)
e)	Work-in Process Inventory	$300,860
	Factory Overheads (42,980 hours * $7 per DLH)		$300,860
	(To record the assigning of factory overheads to production)
f)	Finished Goods Inventory	$1,267,470
	Work-in Process Inventory		$1,267,470
	(To record the completion of goods)
g)	Cost of Goods Sold	$1,524,550
	Finished Goods Inventory		$1,524,550
	(To record the worth of goods sold)

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