Question

Job Costing Journal Entries Prepare journal entries to record the following transactions and events for September using a job order costing system. (a) Purchased raw materials on credit, $189.000. (b) Raw materials requisitioned: $62,000 direct and $40,000 indirect. (c) Factory payroll accrued $125,000, including $75,000 indirect labor, remainder was direct labor. (d) Paid other actual overhead costs totaling $58,500 with cash. (e) Applied overhead totaling $47.500. (f) Finished and transferred jobs totaling $277,800. (g) Jobs costing $189.800 were sold on credit for $257,000. HTML Editore В І IX EX 21 x x V GOVO 12pt Paragraph

Answer 1

	Account title and explanation	Debit	Credit
a	Raw materials inventory	$189,000
	Accounts payable		$189,000
	[To record purchase of inventory on account]
b	Work in process inventory	$62,000
	Manufacturing Overhead	$40,000
	Raw materials inventory		$102,000
	[To record raw materials used]
c	Work in process inventory	$50,000
	Manufacturing Overhead	$75,000
	Factory wages		$125,000
	[To record direct and indirect labor]
d	Manufacturing Overhead	$58,500
	Cash		$58,500
	[To record payment of overhead]
e	Work in process inventory	$47,500
	Manufacturing overhead		$47,500
	[To record ovrehead applied]
f	Finished goods inventory	$277,800
	Work in process inventory		$277,800
	[To record units completed and transferred]
g	Accounts receivable	$257,000
	Sales revenue		$257,000
	[To record credit sales]
	Cost of goods sold	$189,800
	Finished goods		$189,800
	[To record cost of goods sold]