Question

question 1

requirments

data

Construction Company (Cick the icon to view the data ) produces gadgots for the coveted small appliance market. The following data reflect activily for the year 2017 Construction Co uses a normal-costing system and allocates overhead to work i in process at a rate of $2 60 per direct manufacturing labor dollar Indrect materials are insignificant so there Read the tequirements Requirement 1. Prepare journal entries to record the transactions for 2017 including an indicate the source document that would be u credits. Exclude explanations from any journal entries) used to authorize each enby Also note which subsidiary ledger, if any, should be referenced as backup for the entry (Record debits first then Record the purchase of direct materials $122.000 Journal Entry Debit Credit Accounts t1) Choose from any list or enter any number in the input fielos and then click Check Answer 18 pertaining Check Answer Clear Al lar.I Requirements cost Prepare jounal entries to record the transactions for 2017 including an entry ckup to close out over- or underallocated overhead to cost of goods sold: For eac journal entry indicate the source document that would be used to authorize each entry Also note which subsidiary ledger, if any, should be referenced as backup for the entry se 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account. Print Done the input fields and then click Check Answer Costs incurred: Purchases of direct materials (net) on credit 122,000 85,000 Direct manufacturing labor cost 54,600 Indirect labor 37,000 Depreciation, factory equipment Depreciation, office equipment 8,500 23,000 Maintenance, factory equipment Miscellaneous factory overhead 9,800 72,000 Rent, factory building 93,000 Advertising expense 39,000 Sales commissions Print Done 8,500 Depreciation, office equipment 23,000 Maintenance, factory equipment 9,800 Miscellaneous factory overhead 72,000 Rent, factory building 93,000 Advertising expense 39,000 Sales commissions Inventories: December 31, 2017 January 1, 2017 12,000 Direct materials S 9,000 $ 22,000 6,600 Work in process 31,000 69,000 Finished goods Print Done

Answer 1

1 Journal Entries:
Date	Acc Title	Debit $	Credit $
1	Direct Material	122000
	Accounts Payable		122000
	(Purchase of DM on credit)
	WIP	119000		(9000+122000-12000)
	Direct Material		119000
	(transfer of DM to WIP)
2	WIP	85000
	Manufacturing Overhead	54600
	Payroll		139600
	(transfer of labor to wip & overhead)
3	Manufacturing Overhead	141800
	Dep - Fac Eq		37000
	Maint - Fac Eq		23000
	Misc. - Fac Build.		9800
	Rent Fac Build.		72000
	(actual manufacturing overhead incurred)
4	WIP	221000		(85000*2.60)
	Manufacturing Overhead		221000
	(Manufacturing overhead applied to WIP)
5	FG Inventory	409600
	WIP		409600
	(FG transferred)

2) T-Accounts:
Direct Material account:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
OB	9000	WIP	119000
PUR	122000	CB	12000
	131000		131000
WIP account:
OB	6600	FG Inventory	409600
DM	119000	CB	22000
DL	85000
Manuf OH Allocated	221000
	431600		431600
Manufacturing Overhead Control Account
Ind. Labor	54600	Manuf OH allocated	221000
Dep - Fac Eq	37000
Maint - Fac Eq	23000
Misc. - Fac Build.	9800
Rent Fac Build.	72000
COGS	24600
	221000		221000
Manufacturing overhead allocated Account
Manuf OH Control	221000	WIP	221000
Finished Goods Inventory account:
OB	69000	COGS	447600
WIP	409600	CB	31000
	478600		478600
COGS account:
FG Inv	447600	Manuf OH Control	24600
		Income summary	423000