Question

a. Raw materials purchased on account, $211,000. b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). C. Accrued direct labor cost of $48,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,200 machine-hours were used in October. g. Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $448,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 20% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000. Beg. bal. Beg. bal. b. b. Manufacturing Overhead 537,600 X 37,600 22.000 104.000 130,000 Work in Process 34,000 537,600 X 150,400 48,000 537,600 X C. OOOO ✓ c. h(2) d. X End. bal. 244.000 End. bal 232,400

Answer 1

Transaction Debit Credit General Journal / $ 211,000 Raw materials Accounts bayable Ho second law materiali purchaseel) $ 211,000 b Work in process $ 150,400 Manufacturing over head $37,600 Raw materials $188.000 Ho second raw materials ured) Work in process $ 48,000 Manufacturing Overhead $22,000 Salaries and wages Payable (to second direct and indirect labor cost accrued) $70,000 $104,000 Manufacturing overhead Accumulated Depreciation (Yo record depreciation) $104,000 ec $130,000 Manufacturing Overhead Accounts Payable (to record other manufacturing Over head costs $ 130,000

Work in Process 1$ 533,400 $533,900 Manufactusing overhead 140 věcoad manufacturing overheadly g finished goods $515,000 Work in Process (o record job sheet transferred) 515,000 $448,000 h(1) Cost of goods sold finished goods $448.000 (Yo record jeb shipped to customers) $537,600 Accounts Receivable sales 140 second sales) $537,600 Calculation: ifs Manufacturing overhead = 76,200 machine hours x $7 per machine hour $ 533,400 h(2) Accounts Receivable $448,000 + ($ 448,000 X 207.) = $448,000 + $ 89,600 = $537,600

b Manufacturing Overhead $37,600 $ 533,400 f. $ dd, 000 $ 104,000 $ 130,0 0 0 d. e. Endo Bal. $239,800 Beg Bal. . b. Work in Process $ 34,000 $ 150,400 $ 515,000 g $ 48,000 $ 533,400 de End. Bal. $250,800