Question

The following transactions were incurred by Dimasi Industries during January 2010:

1. Issued $800,000 of direct material to production
2. Paid 40,000 hours of direct labor at $18 per hour
3. Accrued 15,500 hours of indirect labor cost at $15 per hour
4. Recorded $102,100 of depreciation on factory assets
5. Accrued $32,800 of supervisors' salaries
6. Issued $25,400 of indirect material to production
7. Completed goods costing $1,749,300 and transferred them to finished goods.

A. Prepare journal entries for these transactions using a single overhead account for both variable and fixed overhead. The Raw Material Inventory account containsonly direct material; indirect material costs are recorded in Supplies Inventory.

B. If Work in Process Inventory had a beginning balance of $18,900 and an ending balance of $59,600, what amount of manufacturing overhead was included in Work inProcess Inventory during January 2010?

Answer 1

1. Work -in process A/c............Dr. 800,000
To Raw materials A/c 800,000
2. Direct labor A/c...........Dr. 720,000
To cash A/c (40,000 * 18) 720,000
3. Overhead A/c.................Dr. 232,500
To Accounts payable A/c 232,500
Work -in process A/c............Dr. 232,500
To Overhead A/c 232,500
4. Overhead A/c..........Dr. 102,100
To Fixed Assets A/c 102,100
Work -in process A/c............Dr. 102,100
To Overhead A/c 102,100
5. Overhead A/c...... Dr. 32,800
To Accounts payable A/c 32,800

Work -in process A/c............Dr. 32,800
To Overhead A/c 32,800
6. Work -in process A/c............Dr. 25,400
To supplies A/c 25,400
7. Finished goods A/c..............Dr. 1,749,300
To Work -in process A/c 1,749,300

Answer 2

1. Work -in process A/c............Dr. 800,000

ToRaw materials A/c 800,000

2. Direct labor A/c...........Dr. 720,000

To cash A/c (40,000 * 18) 720,000

3. Overhead A/c.................Dr. 232,500

To Accounts payable A/c 232,500

Work -in process A/c............Dr. 232,500

To Overhead A/c 232,500

4. Overhead A/c..........Dr. 102,100

To Fixed Assets A/c102,100

Work -in process A/c............Dr. 102,100

To Overhead A/c 102,100

5. Overhead A/c...... Dr. 32,800

To Accounts payable A/c 32,800

Work -in process A/c............Dr. 32,800

To Overhead A/c 32,800

6. Work -in process A/c............Dr. 25,400

To supplies A/c 25,400

7. Finished goods A/c..............Dr. 1,749,300

ToWork -in process A/c 1,749,300

Answer 3

What about the "b" section of this problem? Anyone? Thanks in advance!