Finn Manufacturing Company uses a job order cost accounting system and keeps per
ID: 2353319 • Letter: F
Question
Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.June 1 Purchased raw materials for $25,000 on account.
8 Raw materials requisitioned by production:
Direct materials $8,000
Indirect materials 1,000
15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.
25 Incurred $78,000 of factory labor.
25 Time tickets indicated the following:
Direct Labor (4,500 hrs
Explanation / Answer
1.Raw Materials Inventory ........................................$25,000 Accounts Payable ......................................................$25,000 (Purchase of raw materials on account) 8.Work In Process Inventory ......................................$8,000 Manufacturing Overhead ........................................$1,000 Raw Materials Inventory ............................................$9,000 (To assign materials to jobs and overhead) 15.Manufacturing Overhead .......................................$5,100 Cash .................................................................... $5,100 (To record payment of factory utilities and repairs) 25.Factory Labor ................................................... $78,000 Factory Wages Payable .............................................$78,000 (To record factory labor costs) 25.Work In Process Inventory ......................................$54,000 Manufacturing Overhead ........................................ $24,000 Factory Labor .........................................................$78,000 (To assign factory labor to jobs and overhead) 25.Work In Process Inventory .......................................$40,500 manufacturing Overhead .........................................$40,500 ( to apply overhead to jobs) 28.Finished Goods Inventory .......................................$18,000 Work In Process Inventory .........................................$18,000 (To record completion of production) 30.Accounts Receivable ............................................ $20,000 Cost of Goods Sold ...............................................$15,000 Sales ........................................................... $20,000 Finished Goods Inventory ........................................... $15,000 (To record sales of finished goods and its cost)
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