Question

Starr Company reports the following information for August. Raw materials purchased on account Direct materials used in production Factory wages earned (direct labor) Overhead rate $83,400 $49,600 $20,450 130 of direct labor cost Prepare journal entries to record the following events. 1. Raw materials purchased. 2. Direct materials used in production. 3. Direct labor used in production. 4. Applied overhead. View transaction list Journal entry worksheet < 1 2 3 4 Record raw materials purchased on account Note: Enter debits before credits Transaction General Journal Debit Credit 1

Answer 1

For recording the raw material used in the the production, the raw material inventory account is credited & the work in process account is debited with the amount of raw material used. Similarly for recording the direct labor cost, the work in process account is debited & the factory payroll payable a/c is credited. Same is the case for overhead applied.

All the journal entries are shown in the image attached.

JournAL ENTRIES PARTICULARS Debit Credit D Raw Material Inventory, ale Dr. 83,400 To Accounts payable ale 83,400 2 2) Work in process al Di 49,600 To Rw Manenial Inventory ale 49,600 3) Work in process ale Dr. 20,450 To factory payroll payable ale 20,450 4) Work in process alo Dr. 26,585 *To facto story Overhead alc Overhead a Direct labor cost X 130 Factory Too 20450 X 120 ) 26585 26,585 * 1)