Question

1:52 s Peralta Inc, has provided the following information for 2018. Prepare the journal entries to record these transactions. a Purchased raw materials on account for $145,000 Issued S115,000 in raw materials to production ($22,000 were not traceable to specific jobs). e Incurred S115,000 in direct labor costs (14,375 hours) and $62,500 in supervision costs (paid in cash) Incurred the following additional manufacturing overhead costs: factory lease $24,000 (paid in cash) depreciation on equipment S20,000; custodial supplies $7,500 (paid in cash) Incurred the following nonmanufacturing costs, both paid in cash: advertising S75,000; sales commissions $88,000. t Applied manufacturing overhead to jobs in process at a rate of $10 per direct labor hour. e Completed jobs costing a total of $345,000 Sold jobs for $425,000 on account. The cost of the jobs was $342,000. i. Closed the Manufacturing Overhead account balance.

Answer 1

Journal entries
Transaction	Account Titles	Debit	Credit
a	Raw Material Inventory	$145,000.00
	Accounts Payable		$145,000.00
b	Work in process Inventory	$93,000.00
	Manufacturing Overhead	$22,000.00
	Raw Material Inventory		$115,000.00
c	Work in process Inventory	$115,000.00
	Manufacturing Overhead	$62,500.00
	Cash		$177,500.00
d	Manufacturing Overhead	$51,500.00
	Cash		$31,500.00
	Accumulated Depreciation - Equipment		$20,000.00
e	Selling and administrative expense	$163,000.00
	Cash		$163,000.00
f	Work in process Inventory [14375 hours x $10]	$143,750.00
	Manufacturing Overhead		$143,750.00
g	Finished Goods Inventory	$345,000.00
	Work in process Inventory		$345,000.00
h-1	Accounts Receivables	$425,000.00
	Sales		$425,000.00
h-2	Cost of goods sold	$342,000.00
	Finished Goods Inventory		$342,000.00
i	Manufacturing Overhead [$143750-$136000]	$7,750.00
	Cost of goods sold		$7,750.00