Question

Boeing is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. On May 1, 2019, the general ledger for Boeing contain the following data ($ Million). Raw Materials Inventory $1,400 Work in Process Inventory $7,410 Subsidiary ledger data for Work in Process Inventory on May 1 are as follows: Job Cost Sheets Customer Job Cost Element India Italy Australia Direct materials 1,300 $960 470 830 400 570 Direct labor Manufacturing overhead 940 1140 800 $2,370 $3,010 $2,030 During May, raw materials purchased by cash were $5,300, and all wages were on account. Additional overhead costs consisted of depreciation on factory building on account $450, factory utilities on account $370, factory property taxes on account $690, factory insurance expenses $130 incurred on account. A summary of materials requisition slips and time tickets for May shows the following. Customer Job Materials Requisition Slips Time tickets India $450 $750 Dubai 260 170 Italy 480 640 Australia 550 630 1,740 2,190 General use 1,300 990 3,040 3,180

Answer 1

Answer :

Primary working

#	India	Dubai	Italy	Australia	Total
Beginning work in process	$2,370	-	$3,010	$2,030	$7,410
Direct material used (Refer material requision slips)	$450	$260	$480	$550	$1,740
Direct labor cost (Refer time ticket)	$750	$170	$640	$630	$2,190
Applied factory overhead (200% of direct labor cost)	$1,500	$340	$1,280	$1,260	$4,380
Total manufacturing costs	$5,070	$770	$5,410	$4,470	$15,720

(a). Journal Entries

Date	Accounts Title	Debit	Credit
(1)	Raw material inventory	$5,300	-
	To Cash	-	$5,300
	(To Record raw materials by cash)	-	-
	Wages Expense	$3,180	-
	Wages payable	-	$3,180
	(To Record wages incurred on account)	-	-
(2)	Manufacturing overhead	$1,640	-
	To Accumulated derpeciation on building	-	$450
	To Factory property taxes	-	$370
	To Factory property taxes	-	$690
	To Factory Insurance	-	$130
	(To Record manufacturing overhead costs incurred)	-	-
(3).	Work in process (Direct materials )	$1,740	-
	Manufacturing overheads (Indirect material	$1,300	-
	To Raw material inventory	-	$3,040
	(To Record raw material requisitioned)	-	-
	Work in process (direct labor costs)	$2,190	-
	Manufacturing overhead (Indirect labor costs)	$990	-
	Wages payable / Wages Expense	-	$3,180
	(To Record factory labour used)	-	-
	Work in process	$4,380	-
	To Manufacturing overheads	-	$4,380
	(To Record applied manufacturing overheads)	-	-
(4).	Finished goods inventory	$14,950	-
	To Work in process inventory	-	$14,950
	(To Record completion of goods Job Indian, Italy and Australia) (5,070 + 5,410 + 4,470)	-	-
	Cost of goods sold	$14,950	-
	To Fininshed goods inventory	-	$14,950
	(To Record cost ofgoods sold)	-	-
	Accounts Receivable	$37,000	-
	To Sales Revenue	-	$37,000
	(To Record sales on account)	-	-
	Cash	$26,000	-
	To Accounts Receivable (18,000 + 8,000)	-	$26,000
	(To Record collection from India and Australia)	-	-

(b). Work in process inventory

Particulars	Debit	Particulars	Credit
Beginning Inventory	$7,410	Finished goods inventory (4)	$14,950
Direct Materials (3)	$1,740	-	-
Direct labour (3)	$2,190	-	-
Applies Manufacturing overhead (3)	$4,380	-	-
		Ensing Inventory	$770
	$15,720		$15,720

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