Question

i need help with this please in journal form

Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $118,000. b. Direct materials used in production, $46,500. Indirect materials used in production, $20,800. c. Paid cash for factory payroll, $60,000. Of this total, $43,000 is for direct labor and $17,000 is for indirect labor. d. Paid cash for other actual overhead costs, $9,375. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $91,000. g1. Jobs that had a cost of $91,000 were sold. g2. Sold jobs on account for $130,000.

Answer 1

Transaction	General Journal	Debit	Credit
a.	Raw materials inventory	$ 118,000
	Accounts payable		$ 118,000
	(To record the purchase of raw materials)
b.	Work in process inventory	$    46,500
	Raw materials inventory		$    46,500
	(To record the direct materials used)
	Factory overhead	$    20,800
	Raw materials inventory		$    20,800
	(To record the indirect materials used)
c.	Work in process inventory	$    43,000
	Factory overhead	$    17,000
	Cash		$    60,000
	(To record the wages paid)
d.	Factory overhead	$      9,375
	Cash		$      9,375
	(To record the actual overhead costs incurred)
e.	Work in process inventory ($43,000*125%)	$    53,750
	Factory overhead		$    53,750
	(To record the overhead applied)
f.	Finished goods inventory	$    91,000
	Work in process inventory		$    91,000
	(To record the finished goods)
g(1).	Cost of goods sold	$    91,000
	Finished goods inventory		$    91,000
	(To record the cost of goods sold)
g(2).	Accounts receivable	$ 130,000
	Sales		$ 130,000
	(To record the sales on account)