Question

145.000 The following information is available for the ison Comparation for the current year Cost of goods sold... Depreciation of factory equipment... .. 25, 200 Direct labor Finished goods inventory. Beginningar Factory insurance ... .. .. Factory utilities Goods transferred from Work in Process Inventory to Finisbed Goods Inventory. 285.150 Indirect labore Raw materials inventory. Beginning-year Raw materials purchased Raw materials used in production Kincludes $7.000 of indirect materials)..... Rent on factory building 8,400 11.200 116,200 MPORTANT . 121,800 22,400 - Bison Company uses a predetermined overhead rate of 150 entries for the following transactions and events: (a) Purchase of raw materials on account of direct labor cost. Prepare jo - - (b) Use of raw materials in production to Work in Process Inventory and Factory Overhead. DATE SUBJ (e) Cost of workers to Work in Process Inventory and Factory Overhead. (d) Recording of other factory overhead. Assume that all items other than depreciation are paid in cash. 38 39 (e) Applied Factory Overhead to Work in Process Inventory. ego co cao ( Transfer of goods completed to Finished Goods Inventory. (g) Recording cost of goods sold. са сва се са сва се 2 CAS 8 43 CASE A 45 AM (h) Assignment of over- or underapplied overhead to Cost of Goods Sold. 46

Answer 1

	Journal
		Debit	Credit
a)	Raw Material	116200
	Accounts Payable		116200
b)	Work in Progress ($121800 - $7000)	114800
	Factory Overhead	7000
	Raw Material		121800
c)	Wages	73150
	Cash		73150
	[Assumed Direct labour & Indirect Labour are paid in Cash]
	Work in Progress	64750
	Factory Overhead	8400
	Wages		73150
d)	Factory insurance	11200
	Factory Utilities	16800
	Rent on Factory building	22400
	Depreciation	25200
	Cash ($11200+$16800+$22400)		50400
	Factory Equipment		25200
	Factory Overhead	75600
	Factory insurance		11200
	Factory Utilities		16800
	Rent on Factory building		22400
	Depreciation		25200
e)	Work In Progress ($64750*150%)	97125
	Factory Overhead		97125
f)	Finished Goods	285150
	work in progress		285150
g)	Cost of Goods Sold	292000
	Finished Goods		292000
h)	Cost of Goods Sold	21525
	Factory Overhead (97125 - 75600)		21525