Question

Tough Hardware purchases raw materials and processes those purchases through a receiving/inspection process prior to stocking for production Tough places 3 purchase orders for materials for production and receives the goods that day. The first PO is for 2,500 1/2" x 96" milling blanks at $2.75 each. The second Pois for 4,000 pieces of 48" x 96" x 1" sheet steel at $15.55 each. The third PO is for five 5 gallon drums of miling lubrication oil at $475,00 per barrel. The receiving/inspection process is completed and the goods are transferred from Receiving Inventory to Raw Materials. The Receiving/Inspection Department assigns manufacturing overhead of $55.00 per purchase order as well as $2.75 per piece on metal goods and $35.00 per container on fluids. All laboris allocated through overhead. Prepare the journal entries to do the following: a. Purchase and receive these items to Receiving Inventory on account b. Assign overhead to the metal goods. Asion overhead to the goods. Previous 1:53 PM C & 5 4 5 6 00 9 R. T T U 3 O Р home 4 G H K 2 puse V B. N M

Answer 1

Journal Entries (A). Purchase and Recive these items to Receiving Inventory on account: Receiving Inventory TO Accounts Payable 71450 71450 17985 • (B) Assign overhead to the retal goods" Reciving Inventory I To Mauefacturing overhead 17985 2 (c) Assign, overhead to the fluid goods: Reciving Inventory To manufacturing overlead 175 4 175 (D) Transfer all goods to Raw Mate- ว sials Inventory in Raw Material Inventory . To receiving Inventory 89610 89610

Working Notes (A) Receiving Inventory 2500 x 2.75 + 4000 x 15:55 + 5x475 11450 (B) Manufacturing overleds Creetal Goods) (2500X 2.75+ 55) + (4000 X 2.75455) 17985 (c) Manufacturing overheads ( fluid goods) 3585 => 1175 (D) Raw Materials Inventory (6875 + 6930) + (62200 +11055) +(2375+175) 89610
​​​​​Please Rate My Answer If You Really Like It.

Thank You...