Question

Prepare summary Journal entries to record the following transactions for a company In Its first month of operations. a. Raw materlals purchased on account, $116,000. b. DIrect materlals used In production, $46,000. Indirect materlals used in production, $20,600. c. Pald cash for factory payroll, $55,000. Of thls total, $41,000 Is for direct labor and $14.000 Is for Indlrect labor. d. Pald cash for other actual overhead costs, $9,250. e. Applied overhead at the rate of 120% of direct labor cost. f. Transferred cost of Jobs completed to finished goods, $85,600. g. Sold Jobs on account for $123,000 g/2). The jobs had a cost of $85.600 grt. View transaction list Journal entry worksheet ら Record raw materials purchased on account Note: Enter debits before credits Transaction General Journal DebitCredit Record entry Clear enty View genèral joumal

Answer 1

	TR	General Journal				Debit	Credit
	a.	Raw materials iventory				116,000
		Accounts payable					116,000
	b.	work in process inventory				46,000
		manufacturing overhead				20,600
		Raw materials inventory					66,600
	c.	Work in process inventory				41,000
		manufacturing overhead				14,000
		cash					55,000
	d.	manufacturing overhead				9,250
		cash					9,250
	e.	Work in process inventory				49200
		manufacturing overhead					49,200
	f.	Finished goods inventory				85,600
		work in process inventory					85,600
	g.	Accounts receivable				123,000
		sales					123,000
		cost of goods sold				85,600
		finished goods inventory					85,600