Question

Problem - Journal Entries for a Manufacturer (24 points) Prepare journal entries to record the following summarized operations related to production for a company using a job order cost system. Omit explanations. a. Materials purchased on account $ 167,000 b. Materials requisitioned: For production orders 153,700 For general factory use 2,700 c. Factory labor used: On production orders 141,300 For general factory purposes 12,000 d. Factory overhead costs incurred: Depreciation of factory equipment 67,000 Utilities paid in cash 100,000 e. Factory overhead applied, predetermined rate 100% of direct ? labor dollars f. Cost of jobs transferred to Finished Goods 415.300 8. Jobs sold on account: cost $412,000; selling price 638,000 h. Closed the under- or over-applied overhead account balance. ? Journal Entries for a Manufacturer (24 points) DATE DESCRIPTION POST REF DEBIT CREDIT 1 1 2 2 3 3 4 4 5 6 5 6

Answer 1

Journal Entries
Events	Particulars			Debit	Credit
a)	Raw Materials			$ 1,67,000.00
	To Accounts Payable				$ 1,67,000.00
b)	Work in Process			$ 1,53,700.00
	Manufacturing Overhead			$      2,700.00
	To Raw Materials				$ 1,56,400.00
c)	Work in Process			$ 1,41,300.00
	Manufacturing Overhead			$    12,000.00
	To Salaries Payable				$ 1,53,300.00
d)	Manufacturing OH			$ 1,67,000.00
	To Accumulated Depreciation				$    67,000.00
	To Cash				$ 1,00,000.00
e)	Work in Process			$ 1,41,300.00
	To Manufacturing Overhead				$ 1,41,300.00
	($ 153700 x 100%)
f)	Finished Goods Inventory			$ 4,15,300.00
	To Work in Process				$ 4,15,300.00
g)	Accounts Receivable			$ 6,38,000.00
	To Sales				$ 6,38,000.00
	Cost of Goods sold			$ 4,12,000.00
	To Finished Goods Inventory				$ 4,12,000.00
h)	Cost of Goods sold			$    40,400.00
	To Manufacturing OH				$    40,400.00

Workings:

Computation of under/overapplied OH
Indirect Material			$      2,700.00
Indirect Labor			$    12,000.00
Factory Depreciation			$    67,000.00
Utilities Expense			$ 1,00,000.00
Manufacturing OH incurred			$ 1,81,700.00
Manufacturing OH applied			$ 1,41,300.00
Underapplied OH			$    40,400.00