Question

Check my w 1 4 points a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 Indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. 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 $6 per machine-hour. A total of 76,200 machine-hours were used in October. 9. Jobs costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 38% above cost. 01231 ebook 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 $37,000. Het Complete this question by entering your answers in the tabs below. Pint Required 1 Required 2 References Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction ist Journal entry worksheet 1 2 3 4 5 6 7 8 9 Raw materiais purchased on account, $210,000

Answer 1

1. Journal entries of transactions

Date	Accounts Titles	Debit in $	Credit in $
A	Raw Materials Inventory	$210000
	Accounts Payable		$210000
	(To record purchase of raw materials on account)
B	Work in Process	$152,000
	Manufacturing Overhead	$38000
	Raw Materials Inventory		$190000
	(To record raw materials used in production)
C	Work in Process	$49,000
	Manufacturing Overhead	$21,000
	Salaries and Wages Payable		$70000
	(To record direct and indirect labor cost)
D	Manufacturing Overhead	$104,000
	Accumulated depreciation - Factory equipment		$104000
	(To record depreciation on factory equipment)
E	Manufacturing Overhead	$130,000
	Accounts Payable		$130000
	(To record other manufacturing overhead costs incurred)
F	Work in Process	$457,200
	Manufacturing Overhead		$457,200
	(To record manufacturing overhead applied during production; $6 x 76,200)
G	Finished Goods	$510,000
	Work in Process		$510000
	(To record jobs completed)
H	Cost of Goods Sold	$452,000
	Finished Goods		$452,000
	(To record cost of goods sold)
I	Accounts Receivable	$623,760
	Sales		$623,760
	(To record sale of completed jobs, 452,000 x 138% = 605,680)

T-Accounts

	Manufacturing overhead Account
Raw materials inventory	$38000	Work in process	$457,200
Salaries and wages payable	$21,000
Accumulated Depreciation -Factory equipment	$104,000
Accounts Payable	$130,000
		ending balance	164,200

Work in progress Account
Beg. Balance	$37,000
Raw materials inventory	$152000	Finished Goods	$510,000
Salaries and wages payable	$49,000
Manufacturing overhead	$457200
Ending balance	$185,200