****Hello. The Green boxes below are the answers I got correct***. I need help w
ID: 2421836 • Letter: #
Question
****Hello. The Green boxes below are the answers I got correct***. I need help with second half of question.
Smith Die Company manufactures cutting dies for the shoe industry. Each set of dies is custom designed to a customer's templates. During the first week of May, six orders were received from customers. They were assigned job numbers 1005 to 1010. The following transactions occurred during the first week of May: Smith Die purchased steel on account from Eastern City Steel costing $5,700. The company received and paid for supplies (indirect materials) from Mallard Supply costing $2,800 Material requisitions indicated that materials were issued to the factory floor as follows: Direct Materials Indirect Materials Job No 1005 1006 1007 1008 1009 1010 Totals $ 610 890 1,600 700 420 380 4,600 1,100 The labor time ticket summary reflected the following costs for the week: Direct Labor Indirect Labor Job No 1005 1006 1007 1008 1009 1010 Totals $ 1,400 1,900 3,400 1,900 670 540 9,8106,200Explanation / Answer
1./
RAW MATERIAL INVENTORY A/C..............................DR $5700
TO ACCOUNTS PAYBLE A/C $5700
2./
SUPPLIES A/C.........................................DR $2800
TO CASH A/C $2800
3./
WORK IN PROCESS A/C....................................DR $5700 ($4600 + $1100)
TO RAW MATERIAL INVENTORY A/C $4600
TO SUPPLIES A/C $1100
4./
WORK IN PROCESS A/C........................................DR $16010
TO DIRECT LABOUR A/C $9810
TO INDIRECT LABOUR A/C $6200
6./
WORK IN PROCESS A/C...............................................DR $17658 ($9810 * 180%)
TO MANUFACTURING OVERHEAD $17658
7./
FINISHED GOODS INVENTORY A/C.......................DR $27880 (4530 + 6210 + 11120 + 6020)
TO WORK IN PROCESS INVENTORY A/C $27880
8./
ACCOUNTS RECEIVABLE A/C...............................DR $36244 ($27880 * 130%)
COST OF GOODS SOLD A/C.................................DR $27880
TO SALES REVENUE A/C $36244
TO FINISHED GOODS INVENTORY A/C $27880
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