Question

Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $80,000. b. Direct materials used in production, $37,000. Indirect materials used in production, $12,000. c. Paid cash for factory payroll, $35,000. Of this total, $25,000 is for direct labor and $10,000 is for indirect labor. d. Paid cash for other actual overhead costs, $7,000. e. Applied overhead at the rate of 120% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $50,470. g. Sold jobs on account for $72,100 g(2). The jobs had a cost of $50,470 g(1). View transaction list Journal entry worksheet 4 5 5 6 7 8 9 Record the usage of direct and indirect labor, paid in cash. Note: Enter debits before credits. General Journal Debit Credit Transaction c. Record entry Clear entry View general journal

Answer 1

Answer
Sr.N	Explanation	Debit	Credit
a	Raw materials inventory	$        80,000
	Accounts payable		$        80,000
b1	Work in process inventory	$        37,000
	Raw materials inventory		$        37,000
b2	Factory overhead	$        12,000
	Raw materials inventory		$        12,000
c	Work in process inventory	$        25,000
	Factory overhead	$        10,000
	Cash		$        35,000
d	Factory overhead	$          7,000
	Cash		$          7,000
e	Work in process inventory	$        30,000		25000*120%
	Factory overhead		$        30,000
f	Finished goods inventory	$        50,470
	Work in process inventory		$        50,470
g1	Cost of goods sold	$        50,470
	Finished goods inventory		$        50,470
g2	Accounts receivable	$        72,100
	Sales		$        72,100