Question

Alam Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows:

Raw materials	$	24,300
Work in process	$	73,300
Finished goods	$	27,300

The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 45,300 machine-hours and incur $181,200 in manufacturing overhead cost. The following transactions were recorded for the year:

a.	Raw materials were purchased, $416,300.
b.	Raw materials were requisitioned for use in production, $423,000 ($380,300 direct and $42,700 indirect).
c.	The following employee costs were incurred: direct labor, $414,300; indirect labor, $60,300; and administrative salaries, $212,300.
d.	Selling costs, $141,300.
e.	Factory utility costs, $20,300.
f.	Depreciation for the year was $81,600 of which $73,300 is related to factory operations and $8,300 is related to selling, general, and administrative activities.
g.	Manufacturing overhead was applied to jobs. The actual level of activity for the year was 48,300 machine-hours.
h.	The cost of goods manufactured for the year was $1,004,300.
i.	Sales for the year totaled $1,416,300 and the costs on the job cost sheets of the goods that were sold totaled $989,300.
j.	The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.

Required:

Prepare the appropriate journal entry for each of the items above (a. through j.). You can assume that all transactions with employees, customers, and suppliers were conducted in cash. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

	General Journal	Debit	Credit
a.	(Click to select)  Manufacturing overhead  Selling expense  Administrative salary expense  Finished goods  Depreciation expense  Cash  Work in process inventory  Raw materials inventory
	(Click to select)  Administrative salary expense  Depreciation expense  Selling expense  Manufacturing overhead  Work in process inventory  Finished goods  Cash  Raw materials inventory
b.	(Click to select)  Raw materials inventory  Finished goods  Selling expenses  Cash  Manufacturing overhead  Work in process inventory  Administrative salary expense  Accumulated depreciation
	(Click to select)  Finished goods  Accumulated depreciation  Work in process inventory  Administrative salary expense  Selling expenses  Cash  Raw materials inventory  Manufacturing overhead
	(Click to select)  Finished goods  Cash  Selling expenses  Depreciation expense  Accumulated depreciation  Raw materials inventory  Work in process  Manufacturing overhead
c.	(Click to select)  Manufacturing overhead  Work in process inventory  Depreciation expense  Selling expenses  Administrative salary expense  Accumulated depreciation  Finished goods
	(Click to select)  Finished goods  Depreciation expense  Manufacturing overhead  Work in process inventory  Administrative salary expense  Selling expenses  Accumulated depreciation
	(Click to select)  Manufacturing overhead  Work in process inventory  Administrative salary expense  Selling expenses  Depreciation expense  Accumulated depreciation  Finished goods
	(Click to select)  Manufacturing overhead  Work in process inventory  Accumulated depreciation  Depreciation expense  Cash  Selling expense  Raw materials inventory  Finished goods
d.	(Click to select)  Depreciation expense  Selling expenses  Finished goods  Work in process  Manufacturing overhead  Raw materials inventory  Administrative salary expense  Cash
	(Click to select)  Raw materials inventory  Accumulated depreciation  Work in process inventory  Finished goods  Depreciation expense  Cash  Selling expense  Manufacturing overhead
e.	(Click to select)  Finished goods  Manufacturing overhead  Depreciation expense  Accumulated depreciation  Cash  Raw materials inventory  Work in process inventory  Selling expense
	(Click to select)  Work in process inventory  Manufacturing overhead  Depreciation expense  Raw materials inventory  Accumulated depreciation  Selling expense  Finished goods  Cash
f.	(Click to select)  Finished goods  Selling expenses  Depreciation expense  Rent expense  Work in process inventory  Accumulated depreciation  Manufacturing overhead  Cash
	(Click to select)  Selling expenses  Depreciation expense  Cash  Rent expense  Finished goods  Manufacturing overhead  Accumulated depreciation  Work in process inventory
	(Click to select)  Work in process inventory  Manufacturing overhead  Depreciation expense  Selling expense  Cash  Accumulated depreciation  Raw materials inventory  Finished goods
g.	(Click to select)  Depreciation expense  Work in process  Accumulated depreciation  Finished goods  Selling expense  Cash  Manufacturing overhead  Raw materials inventory
	(Click to select)  Accumulated depreciation  Manufacturing overhead  Work in process inventory  Depreciation expense  Cash  Finished goods  Raw materials inventory  Selling expense
h.	(Click to select)  Selling expense  Work in process  Depreciation expense  Manufacturing overhead  Raw materials inventory  Finished goods  Accumulated depreciation  Cash
	(Click to select)  Work in process  Manufacturing overhead  Cash  Finished goods  Accumulated depreciation  Raw materials inventory  Depreciation expense  Selling expense
i.	(Click to select)  Work in process  Manufacturing overhead  Selling expense  Raw materials inventory  Finished goods  Cash  Sales  Depreciation expense
	(Click to select)  Sales  Selling expense  Work in process  Depreciation expense  Manufacturing overhead  Raw materials inventory  Cash  Accumulated depreciation
	(Click to select)  Raw materials inventory  Cost of goods sold  Selling expense  Depreciation expense  Finished goods  Work in process  Sales  Manufacturing overhead
	(Click to select)  Finished goods  Work in process  Raw materials inventory  Cash  Manufacturing overhead  Cost of goods sold  Depreciation expense  Selling expense
j.	(Click to select)  Manufacturing overhead  Cash  Depreciation expense  Work in process  Cost of goods sold  Raw materials inventory  Accumulated depreciation  Finished goods
	(Click to select)  Accumulated depreciation  Raw materials inventory  Selling expense  Cost of goods sold  Manufacturing overhead  Finished goods  Cash  Work in process inventory

Answer 1

Prepare journal entries as follows:

Sr. no	General Journal	Debit	Credit
a	Raw material inventory	$416,300
	Cash		$416,300
b	Work in process inventory	$380,300
	Manufacturing overhead	$42,700
	Raw material inventory		$423,000
c	Work in process inventory	$414,300
	Manufacturing overhead	$60,300
	Administrative salary expense	$212,300
	Cash		$686,900
d	Selling expense	$141,300
	Cash		$141,300
e	Manufacturing overhead	$20,300
	Cash		$20,300
f	Manufacturing overhead	$73,300
	Depreciation expense	$8,300
	Accumulated depreciation		$81,600
g	Work in process	$193,200
	Manufacturing overhead ($181200/45300) × 48300 hours		$193,200
h	Finished goods	$1,004,300
	Work in process		$1,004,300
i	Cash	$1,416,300
	Sales		$1,416,300
	COGS	$989,300
	Finished goods		$989,300
j	COGS	$3,400
	Manufacturing overhead		$3,400

Manufacturing overhead
b	$42,700	g	$193,200
c	$60,300
e	$20,300
f	$73,300
Balance	$3,400