Question

Garcia Manufacturing produces a product that passes through a molding process and then through an assembly process. Partial Information related to its manufacturing act ivies for July follow:Direct Materials:Factory Overhead Applied:Raw materials purchased on credit $400,000Molding (150% of direct labor)$ 63,000Direct Materials used – Molding $190,000Assembly (200% of direct labor)$110,750Direct Materials used – Assembly $ 88,600Total Factory Overhead applied$173,750Direct Labor:Cost Transfers:Direct Labor – Molding $42,000From Molding to Assembly$277,200Direct Labor – Assembly $55,375From Assembly to finished goods$578,400Factory Overhead (actual costs):From finished goods to COGS$506,100Indirect Materials used $51,400Indirect Labor used $50,625Other overhead costs $71,725Total factory overhead incurred $173,750Prepare summary journal entries to record the transactions and events of July for:a.Raw material purchasesb. Direct material usagec.Indirect materials usaged. Direct labor usagee. Indirect labor useagef.Other overhead costs (Credit: Accounts payable)g.Application of overhead to the two departmentsh. Transfer of partially completed goods from Molding to Assemblyi.Transfer of finished goods out of Assembly

j.The Cost of Goods Sold

Answer 1

	Account Titles	Debit	Credit
a	Raw Material Inventory	$      400,000
	Accounts Payable		$      400,000
b	Work in Process Inventory - Molding	$      190,000
	Work in Process Inventory - Assembly	$        88,600
	Raw Material Inventory		$      278,600
c	Manufacturing Overhead	$        51,400
	Raw Material Inventory		$        51,400
d	Work in Process Inventory - Molding	$        42,000
	Work in Process Inventory - Assembly	$        55,375
	Wages Payable		$        97,375
e	Manufacturing Overhead	$        50,625
	Wages Payable		$        50,625
f	Manufacturing Overhead	$        71,725
	Accounts Payable		$        71,725
g	Work in Process Inventory - Molding	$        63,000
	Work in Process Inventory - Assembly	$      110,750
	Manufacturing Overhead		$      173,750
h	Work in Process Inventory - Assembly	$      277,200
	Work in Process Inventory - Molding		$      277,200
i	Finished Goods Inventory	$      578,400
	Work in Process Inventory - Assembly		$      578,400
j	Cost of Goods Sold	$      506,100
	Finished Goods Inventory		$      506,100

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