Question

Malone, Inc. uses a job-order cost accounting system and keeps perpetual inventory
records. Prepare journal entries to record the following transactions during the month of
July:
Jul 2 Purchased raw materials for $23,000 on account.
4 Purchased office supplies for $750 cash.
9 Raw materials requisitioned by production:
Direct materials $12,300
Indirect materials 1,760
14 Paid factory utilities, $3,100 and repairs for factory equipment, $3,600.
15 Received property tax bill of $9,850 and accrued for payment at
month-end. Sales office space is 750 square feet and factory space is
6,450 square feet.
21 Incurred $37,800 of factory labour.
26 Time tickets indicated the following for job 1238:
Direct Labour (2,700 hrs × $15 per hr) = $40,500
Indirect
Labour
(950 hrs × $12.50 per hr) = 11,875
$52,375
28 Applied manufacturing overhead to production based on a predetermined overhead
rate of $7.50 per direct labour hour worked.
28 Goods costing $63,000 were completed and transferred to finished goods.
30 Goods costing $62,000 were sold for $75,000 on account.

Answer 1

Date	Account Name	Debit	Credit
Jul-02	Raw Materials Inventory	23,000.00
	Accounts Payable		23,000.00
Jul-04	Office Supplies	750.00
	Cash		750.00
Jul-09	Work in Process Inventory	12,300.00
	Manufacturing overhead	1,760.00
	Raw Materials Inventory		14,060.00
Jul-14	Manufacturing overhead	6,700.00
	Cash		6,700.00
Jul-15	Property tax expense	9,850.00
	Property tax payable		9,850.00
Jul-21	Factory Labor	37,800.00
	Factory wages Payable		37,800.00
Jul-26	Work in Process Inventory	40,500.00
	Manufacturing overhead	11,875.00
	Factory Labor		52,375.00
Jul-28	Work in Process Inventory	20,250.00
	Manufacturing overhead		20,250.00
Jul-28	Finished Goods Inventory	63,000.00
	Work in Process Inventory		63,000.00
Jul-30	Accounts Receivable	75,000.00
	Cost of Goods Sold	62,000.00
	Sales		75,000.00
	Finished Goods Inventory		62,000.00