Question

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Exercise 2-13 Recording events in job order costing LO P1, P2, P3, P4 Prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations a. Raw materials purchased on account, $94,000 b. Direct matenals used in production, $40,500. Indirect materials used in production, $25,000. a cash for factory payroll, $70,000. Of this total, $50,000 is for direct labor and $20,000 is for indirect labor d. Paid cash for other actual overhead costs $7,875. e. Applied overhead at the rate of 125% of direct labor cost. completed to finished goods, $74,000. g. Sold jobs on account for $105,000. The jobs had a cost of $74,000 View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 Record raw materials purchased on account Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

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Journal Entries for the period Credit Debit $94,000 $94,000 $40,500 $40,500 $25,000 $25,000 $50,000 $50,000 $20,000 $20,000 $70,000 $70,000 Journal a) Material Inventory control Account To Accounts Payable (Being material purchased on account) b) Work in process Account To Material Inventory control Account (Being issue of material to work in process) Manufacturing overhead control To Material Inventory control Account (Being indirect material issued) c) Work in process Account To Salaries and wages payable (Being direct labor recorded) Manufacturing overhead control To Salaries and wages payable (Being indirect labor recorded) d) Salaries and wages payable To Cash (Being payment of Salaries) d) Manufacturing overhead control To Cash (Being cash paid for manufacturing overheads ) e) Work in process Account To Manufacturing overhead control Account (Being overhead applied to work in process) f) Finished Goods Inventory To Work in process Account (Being transfer of goods from WIP to Finished Goods ) g) Accounts receivable To Sales (Being sales on credit) Cost of Goods Sold To Finished Goods Inventory (Being transfer of Finished Goods to Cost of Goods Sold) $7,875 $7,875 $62,500 |(125% of $50,000) $62,500 $74,000 $74,000 $105,000 $105,000 $74,000 $74,000