Question

Entries for Product Cost Flow

Record the following transactions that occurred during March 2019 for Harris Manufacturing Company, which uses the perpetual inventory system:

Mar. 12 Transferred $50,000 of completed goods from the factory to the warehouse.

15 Requisitioned $30,000 of materials for use in the factory as direct materials and $5,000 for indirect materials.

18 Sold goods costing $40,000 for $60,000 on account.

General Journal
Date	Description		Debit	Credit
Mar. 12	Answer		Answer	Answer
	Answer		Answer	Answer
	To record the transfer of completed goods.
Mar. 15	Work in process inventory		Answer	Answer
	Answer		Answer	Answer
	Answer		Answer	Answer
	To record the requisitioning of material.
Mar. 18	Answer		Answer	Answer
	Answer		Answer	Answer
	To record the sale of goods on account.
Mar. 18	Answer		Answer	Answer
	Answer		Answer	Answer
	To record the cost of goods sold.

Answer 1

Ans;

Date	Description	Debit	Credit
Mar. 12	Finished goods inventory	50000
	Work in process inventory		50000
	(To record the transfer of completed goods.)
Mar. 15	Work in process inventory	30000
	Manufacturing overhead	5000
	Materials inventory		35000
	(To record the requisitioning of material.)
Mar. 18	Accounts Receivable	60000
	Sales revenue		60000
	(To record the sale of goods on account.)
Mar. 18	Cost of goods sold	40000
	Finished goods inventory		40000
	(To record the cost of goods sold.)