Question

Journalize the following transactions for Lake's Seats. Explanations are not required. (Click the icon to view the transactions.) (Record debits first, then credits. Exclude explanations from any journal entries.) e. Recorded manufacturing overhead: depreciation on plant, $12,000; plant insurance (previously paid), $1,300; plant property tax, $3,400 (credit Property Tax Payable). (Prepare a compound entry.) Date Accounts Debit Credit i More Info f. Allocated manufacturing overhead to jobs, 210% of direct labor costs. Date Accounts Debit Credit a. Incurred and paid Web site expenses, $2,800. b. Incurred manufacturing wages of $19,000, 65% of which was direct labor and 35% of which was indirect labor. C. Purchased raw materials on account, $22,000 d. Used in production: direct materials, $6,000; indirect materials, $3,000. e. Recorded manufacturing overhead: depreciation on plant, $12,000; plant insurance (previously paid), $1,300; plant property tax, $3,400 (credit Property Tax Payable). f. Allocated manufacturing overhead to jobs, 210% of direct labor costs. g. Completed production on jobs with costs of $38,000. h. Sold inventory on account, $30,000; cost of goods sold, $10,000. I. Adjusted for overallocated or underallocated overhead. g. Completed production on jobs with costs of $38,000. Date Accounts Debit Credit Print Done]

Answer 1

a. Web Site Expences Dr - $2800

To Bank A/c Cr - $2800

b. Direct Wges A/c Dr. - $12350 (65% of 19000)

Indirect Wges Dr. - $6650 (35% of 19000)

To Creditors for Expenses A/c Cr - $19000

C. Purchase A/c Dr. - $22000

To Creditors A/c Cr. - $22000

d. Direct material Cost A/c Dr.- $6000

Indirect Material Cost A/c Dr.- $3000

To Purchase A/c Cr.- $9000

e(1). Depreciation A/c   Dr.- $12000

Insurance on Plant A/c Dr.- $1300

Plant Property Tax A/c   Dr.- $3400

To Plant A/c Cr.- $12000

To Bank A/c Cr.- $1300

To Plant Property Tax Payable A/c Cr.- $3400

e(2). Manufacturing Overhead A/c Dr.- $16700

To Depreciation A/c Cr.- $12000

To Plant Insurance A/c Cr.- $1300

To Plant Property Tax Cr.- $3400

f. Job Cost A/c    Dr.- $25935 (210% of Direct Wages)

To Manufacturing Overhead A/c  Cr.- $25935

g. Other manufacturing expenses A/c Dr.- $38000

To Creditors for Expenses Cr.- $38000

h. Debtors A/c Dr.- $30000

To Revenue A/c (Sales) Cr.- $30000

Revenue A/c Dr.-$10000

To Inventory A/c (cost of Inventory) Cr.- $10000

To Profit on Sale A/c Cr.- $20000  

i. Manufacturing Overhead A/c Dr.- $9235   

To Job Cost A/c Cr.- $9235

(Overallocation of overheads = 25935-16700= 9235)