Question

7. Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and pach bagging department. All direct materials enter in the first process. The following descubes production of 1432 points Direct materials used Direct Labor used 20% in Shredding; sex in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging Transferred to finished goods $225,000 $125,000 165% $204,500 $595,000 eBook Hint The company's revenue for the month totaled $480.000 from credit sales, and its cost of goods sold forth Prepare summary journal entries dated October 31 to record its October production activities for (1) direct labor incurred (3) overhead applied. (4) goods transfer from Shredding to Bagging. (5) goods transfer from (6) credit sales, and (7) cost of goods sold Print View transaction list References Journal entry worksheet < 1 2 3 5 6 7 > Record direct materials used in production Note: Enter debit before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal ME GE Hall < Prev 7 of 7 Type here to search ORI E

Answer 1

Answer :- Particular Debit. Credit

1.work in process shredding....Dr. 228000

To Raw material inventory. 228000

2. Work in process- shredding....Dr. $25200

($126000 ×20%)

Work in process- bagging....Dr. $100800

($126000×80%)

To factory wages. $126000

3. Work in process- shredding ....Dr. $41580

($25200 ×165%)

Work in process- Bagging....Dr. $ 166320

($100800 ×165%)

To factory overhead $207900

4. Work in process- Bagging....Dr. $204500

To Work in process- shredding. $204500

5.Finished Good inventory ....Dr. $595000

To work in process- bagging $595000

6.Account Receivable ....Dr. $480000

To Sales Revenue. $480000

7. Cost of Goods Sold....Dr. $258000

To Finished Goods Inventory. $258000