Question

Cr. Date 5-Aug Dr. 10,800 Account Raw materials inventory Accounts payable (Purchase RM-Wholesaler 10.800 8-Aug 2.400 Manufacturing overhead Cash (Repairs - Ck=522) 2,400 11-Aug 3,600 Manufacturing overhead Cash (Rent-Ck #523) 3.600 15-Aug Manufacturing overhead Accumulated depreciation - equip (Depreciation factory equip) 4,800 T 4,800 30-Aug 1,200 Manufacturing overhead Accounts payable (Property taxes) 1.200 $1,800 B. Record journal entries given the following information for August. Material Job Requisitions Time Tickets Mercedes $2,400 $1,800 Corvette $3,000 Murcielago $6,000 $4,800 Land Rover $4.200 $2.400 $14,400 $12.000 General use $600 $1.200 $15,000 $13,200 Idle time, cleaning & maintenance, indirect materials, etc.)
Cannot determine the final portions of Uncompleted C,D,&E. Please Help.

First figure includes all information given for the problem

Answer 1

C. Predetermined overhead rate = $ 150,000 / $ 120,000 = 1.25 or 125 % of direct labor cost.

31 August	Work in Process Inventory	15,000
	Manufacturing Overhead ( $ 12,000 * 125 % )		15,000
	Overhead applied to production

D.

	Mercedes	Corvette	Murcielago	Land Rover
Beginning WIP
Direct materials	2,400	1,800	6,000	4,200
Direct labor	1,800	3,000	4,800	2,400
Man. Overhead	2,250	3,750	6,000	3,000
Total Cost	6,450	8,550	16,800	9,600

E.

31 August	Finished Goods Inventory	31,800
	Work in Process Inventory		31,800
	Cost of goods completed
31 August	Cost of goods sold	31,800
	Finished Goods Inventory		31,800
	Cost of goods sold
31 August	Accounts Receivable	67,288.5
	Sales Revenue		67,288.5
	Sale of goods on account.