Question

The following transactions occurred in during the month of January: a) Purchased $10,000 of raw materials on account b) Requisitioned $8,000 of materials for Jobs 101-105 c) Requisitioned $500 of materials for general factory use d) Paid factory workers wages $7,500 e) Paid factory supervisor salary of $1,500 f) Paid factory rent and utilities of $4,000 g) Applied factory overhead: predetermined rate is $50 per direct labor hour. January Direct Labor hours = 100 h) Completed jobs 101 and 102 – total product cost of $2,250 i) Sold job 101 which had product costs of $1,200 for $3,800. Journalize under a Job Order Cost System Date Description Post Debit Credit Journalize under a Lean Accounting system – note not all transactions require a journal entry.

Answer 1

Journal entries:
S.no.	Accounts title and explanations				Debit $	Credit $
a.	Raw material inventory				10000
	Accounts payable					10000
b.	Work in process inventory				8000
	Raw material inventory					8000
c.	Factory Overheads				500
	Raw material inventory					500
d.	Work in process Inventory				7500
	Cash account					7500
e.	Factory Overheads				1500
	Cash account					1500
f.	Factory Overheads				4000
	Cash account					4000
g.	Work in process ivnentory				5000
	Factory overheads					5000
h.	Finished Goods ivnentory				2250
	Work in process inventory					2250
i.	Cash account				3800
	Sales revenue					3800
	Cost f goods sold				1200
	Finished Goods inventory					1200