Question

Appendix 4A) Journal Entries, T-Accounts structions Chart of Accounts Amount Descriptions Instructions Lowder Inc. builds custom conveyor systems for warehouses and distribution centers. During the month of July, the following occurred Ju 2 28 Purchased materials on account for $42.630 Requisitioned materials totaling $27.000 for use in production: $12.500 for Job 703 and the remainder for Job 704 Recorded direct labor payroll for the month of $26,320 with an average wage of 14 per hour, Job 703 required 780 direct labor hours: Job 704 required 1,100 direct labor hours. incurred and paid actual overhead of $19.950. Charged overhead to production at the rate of $10 per direct labor hour. Completed Job 703 and transferred it to Finished Goods. Kopt Job 704, which was started during July, in process at the end of the month Sold Job 700, which had been completed in May, on account for cost plus 30% 28 28 30 31 31 Beginning balances as of July 1 were: $6.070 Raw Materials Wer in Duracell in in Check My Work 5 more Check My Work uses remaining, Previous All work saved Email Instructor Save and Exit Submit Assignment for Grading 1 8 9 0 delete

Answer 1

Q.1 Journal Entries upto 28th July

Date	Accounts	Debit	Credit
Jul 1	Raw Material	42,630
	Accounts Payable		42,630
	(Being purchase of material on account
Jul 2	Work in Progress (Job 703)	12,500
	Work in Progress (Job 704)	14,500
	Raw Material		27,000
	(Being Raw material issued for production)
Jul 28	Wages	26,320
	Wages Payable		26,320
	(Being wages for July)
Jul 28	Work in Progress (Job 703)	10,920
	Work in Progress (Job 704)	15,400
	Wages		26,320
(Being direct labor hour used for job 703 & 704)
Jul 28	Work in Progress (Job 703)	7,800
	Work in Progress (Job 704)	11,000
	Overhead		18,800
(Being overhead applied @ 10 per direct labor hour)

Q.2 Jobsheet upto 28th July

Job Sheet		Job 703	Job 704
Opening Balance		10,000	-
Raw Material		12,500	14,500
Direct Labor		10,920	15,400
Overead		7,800	11,000
Closing Balance		41,220	40,900

Q.3 Journal entry for transactions on 30th & 31st July

Date	Accounts	Debit	Credit
Jul 30	Finished Goods	41,220
	Work in Progress		41,220
(Job-703 transferred from WIP)
Jul 31	Account Receivable	8,112
	Sales		8,112
(Sale of Job 700)
Jul 31	Cost of Goods Sold	6,240
	Finished Goods		6,240
(Job 700 issued from finished goods)

Q.4 Closing balances of inventories :

Inventories
Raw Material (6070+42630-27000)		21,700
Work in Progress (10000+27000+26320+18800-41220)		40,900
Finished goods (6240+41220-6240)		41,220