Question

QUESTION 33 Fall, Incorporated presented the following financial information for the year. Direct materials purchased on account 155,000 Direct materials used in production 82,000 Direct labor 168,000 Manufacturing overhead incurred 121,000 Manufacturing overhead applied 89,000 Fall completed products costing $315,000. In addition, products costing $298,000 were sold on account for $475,200. Prepare journal entries to record all of the events listed above. T T T Arial A 3 (12pt) T

Answer 1

Journal
Particulars	Debit	Credit
Direct Materials Account	155,000
Accounts Payable		155,000
(being Direct materials Purchases)
Work in Prograss Account	82,000
Dairect Materials		82,000
(being direct materials used in production)
Direct Labour Account	168,000
Cash / Wages Payable		168,000
(being wages incurred)
Work in Prograss Account	168,000
Direct Labour Account		168,000
(being transfer of direct labour to work in prograss account)
Manufacturing overhead Account	121,000
Cash/Payables		121,000
(being manufacturing overheaad incurred)
Work in Prograss Account	89,000
Manufacturing overhead account		89,000
(being manufacturing overhead applied to work in prograss account)
Finished goods Account	315,000
Work in prograss account		315,000
(being completion of production)
Cost of Goods sold	298,000
Finished Goods		298,000
(being recognition of cost of goods sold)
Accounts Recievable	475,200
Sales		475,200
(being sales made on account)

For better clarity of entries

ournal Entries by account flow (see referenced letter)
Ref   Account / Description   Debit   Credit
           
a   Raw Materials Inventory   X  
Cash or Accounts Payable       X
    Purchased raw materials inventory      
           
b   Factory Payroll   X  
    Wages Payable       X
    Record wages earned but unpaid      
           
c   These are examples of some of the entries you may record:
    Manufacturing Overhead   X  
    Accumulated Depreciation       X
    Record depreciation on factory equipment      
           
    Manufacturing Overhead   X  
    Cash       X
    Record factory rent paid with cash      
           
    Manufacturing Overhead   X  
    Accounts Payable       X
    Record factory supplies purchased on credit      
           
d   Work in Process Inventory   X  
    Raw Materials Inventory       X
    Record Direct Materials Used      
           
e   Manufacturing Overhead   X  
    Raw Materials Inventory       X
    Record INDIRECT materials used      
           
f   Work in Process Inventory   X  
    Factory Payroll       X
    Record Direct Labor      
           
g   Manufacturing Overhead   X  
    Factory Payroll       X
    Record INDIRECT labor      
           
h   Work in Process Inventory   X  
    Manufacturing Overhead       X
    Record Overhead APPLIED to production      
           
i   Finished Goods Inventory   X  
    Work in Process Inventory       X
    Record jobs or goods completed (cost of goods manufactured)
           
j   Cost of goods sold   X  
    Finished Goods Inventory       X
    Record cost of jobs or goods completed AND sold