5) Company E $440,000 Raw materials purchased Raw materials requisition Salaries

Question

5) Company E $440,000 Raw materials purchased Raw materials requisition Salaries and wages Direct labor Indirect labor Sales salaries $428,000 400,000 direct28,000 indirect $ 175,000 $217,000 80,000 $ 102,000 Selling cost Factory utility cost Depreciation Manufacturing OH applied to jobs 14,000 $109,000 95k factory and $ 14k non-factory) 27,500 manuf hours S 4 per DLH Cost of goods Manufactured Sales Cost of goods sold on job sheet Close oh to cost of goods sold $ 780,000 $1,210,000 750,000 Prepare all necessary journal entries use T accounts if it helps

Explanation / Answer

Working:

Account Titles and Explanation Debit Credit 1 Raw Materials Inventory 440000 Cash/Accounts Payable 440000 (To record raw materials purchased) 2 Work in process inventory 400000 Manufacturing overhead 28000 Raw Materials inventory 428000 (To record raw materials requisitioned) 3 Work in process inventory 175000 Manufacturing overhead 80000 Sales salaries expense 217000 Cash/Salaries and wages payable 472000 (To record salaries and wages cost) 4 Selling expenses 102000 Cash/Accounts Payable 102000 (To record selling cost) 5 Manufacturing overhead 14000 Cash/Accounts Payable 14000 (To record factory utility cost) 6 Manufacturing overhead 95000 Depreciation expense 14000 Accumulated depreciation 109000 (To record depreciation) 7 Work in process inventory 110000 Manufacturing overhead (27500 x $4) 110000 (To record manufacturing overheads applied) 8 Finished goods inventory 780000 Work in process inventory 780000 (To record cost of goods manufactured) 9 Cash / Accounts receivable 1210000 Sales revenue 1210000 (To record sales) 10 Cost of goods sold 750000 Finished goods inventory 750000 (To record cost of sales) 11 Cost of goods sold 107000 Manufacturing overhead* 107000 (To close manufacturing overheads to cost of goods sold)

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