Question

Need help making journal entries

Invoice #1265 for $680 from Huntsville Water & Electric is received and due October 10". The invoice includes the water and electricity used by Bearkat Bicycles. Assume 70% of the invoice reflects factory use and the other 30% reflects administrative activities. -18 The company declares and pays a cash dividend of $.80 per share. 22 The first note payment of $1,450 is made to the First Bank of Huntsville, which includes $435 in interest. (Interest = (175,000*.03\/12)) Rounded number for project 29 Employees are paid monthly on the 5th of every month. The company accrues the payroll for the month of January, which will be paid on February 5th. The payroll includes the sales and administrative staff that worked a total of 150 hours and earns $15.50 per hour, the factory maintenance worker that worked a total of 115 hours and earns $12.00 per hour, the production supervisor earns $900 a week (assume an even four weeks was worked). Ignore all related payroll taxes. In addition, the following hours were incurred by assembly line workers based on the production time cards for each job: Job Hours Rate 22 $10 88 145 178 72 $10 $10 $10 $10 18 Apply factory overhead to all jobs (14, 15, 16, 17, & 18). Overhead is allocated based on direct labor costs. Budgeted overhead costs for the year were estimated to be $115,200. Bearkat estimates that direct labor costs will amount to $120,000 for the year. Jobs 14, 15, and 17 were completed and transferred to the warehouse. Sold all bikes from Job 14 and Job 15, and 8 bicycles from Job 17 for cash. Ignore sales tax. 29 30 31 Job 16 was completed and transferred to the warehouse. It is now time to prepare the unadjusted trial balance.

this is all the information that i am given in the problem. i just need help with the journal entries. it also has to do with work in process inventory and manufactur overhead

Answer 1

Allocation of overhead (Factory) based on Labour cost" Calculation of Amount q overhead - Job Hours Rate overhead (Hoursy Rate) 22 $10 220 86 $10 860 16 145 $10 1450 178 $10 1780 72 $10 720 15 añ y 5030 5030 120000 x 860 120000 x 860 overhead for Each Job Allocation : - Amount ($) Job overhead Allocation 5048.509 = 120000 x 220 14 15 5030 4 5 465.21 5030 18 120000 x 720 17176-94 5030 Direct labour Cost = $120000 (given) = 20516.9 - 34592.45 16 1200sx 150 5030 17 12 oor x 1780

4050 Journal Entries for January 2020 Transaction - Date particulars LF | Amount Amount of Rent Alc Dr | Prepaid Expenses A/C an 11350 To Bank ALC 5400 [Being Amount prepaid Expenses duef Rent paid of Depreciation All 11026.67 To Building to 111026.67 (Being Depreciation charge on 12 year 'g Building) 03- Direct Material All Dr 30000 Indirect material ATC DY 6000 I To Account payable 36000 Being Material purchared] Direet Material ALC Dr. 5400 In direct Material All 590 To Account Payable (Being Material purchased) 04 Debtor All Cash ALL 10250 To Cash To Debtor (Being cash received from coustomer) ou Bank ALC 110250 10250 To cash All (Being Amount depasit in Bank) Dirut work in progren An 11075 Dr I nr progrese al 644 Indirut work in 11719 To produetion depaitment (Being Material purchase for WIP - Total 9 0635.67 9063561 Dr 5990 DY 10250 Dr

Solution :- Unadjusted Trail Balance 1. S. Nol Name of Accounts LF cr Amount & Dr Amount 476 204 luso 7237.5 Factory Expenses (working Note 1 7 Administrative Expense (Working Note-1 I purchases Tworking Note 2] Sataries (working Note - 3] 2 3 sales 19367.5 Total Total | 1307-5|9367-5 9367- 5 9367-5

Working Note - (1) Invoice value $600 Factory use 70% = 680 x 70% = $476 Administrative Expenie = 680 X 300%. = $204 (2) It is means that the company made purchase and not make payment Immedialitty Company made sayment after due date, so company is required to pay Interest In this case $1450 includes Interest of $ 435. Salary of Administrative staff = No of Hours x Rate Hence, 150 hoursx 15.50 per Hours = $ 2257.5 salary q Factory maintence worker = 115 x12 = $1380 salary of product supervisor = goo x 4 (week) = $3600 Total salary = 2257.5+138013600 = $7237.5

Dr Journal Entries q unadjusted Trail Balance Date I Particulars LF Amount & Amour Ht Factory Expenses ALL 476 Administrative Expenses A/C Dr 204 680 To Bank ALL (Being Amount paid which is relating to Factory and Administrative Expense Ratio between is 70.1 and 30.1) Purchase ALC 1450 1450 To Bank ATC (Being Amefunt to purchase and payment Imade) Administrative staff salary APC Dr [2257.5 | 1380 Factory maintence salary worker MC DY Do 3600 salary to productim Supervision ac 7237.5 To Bank ALC Being salanes Paid to Administrative, Factory maintence and production supervisor Bank All Do 9367.5 9367.5 To sales Alc Being sall made) Total 18735 18735
i have done solution for the question given to me.My answer contain unadjusted Trail balance , working note of trail balance,journal entries of unadjusted trail balance , allocation of overhead based on labour cost and jorunal entries for january 2020 transactions.