Complet journal entry for below a. Direct Materials of $120,000 were purchased t

Question

Complet journal entry for below

a. Direct Materials of $120,000 were purchased terms n/30.

b. Total gross payroll was $90,000, with deductions withheld at the following rates: 7.65% for FICA and 17.5% for federal income tax. The payroll consisted of $45,000 of direct labor, $9000 of indirect labor, $15,000 of sales salaries, and $21,000 of administrative salaries.{make 2 separate entries}

c. Indirect materials and factory supplies of $26,250 were purchased on account.

d. Employer payroll tax consisted of state unemployment tax of 3.1%, federal unemployment tax of .8% and FICA of 7.65%.

e. Analysis of requisitioned materials was:

for production................$60,000

indirect materials..........$15,000

shipping supplies...........$4500

f. Defective shipping supplies of $900 were returned to the vendor.

g. Accounts payable of $74,500 and the accrued payroll were paid.

h. Depreciation of $1000 was recorded on factory machinery. {think Accounting I for the credit}

i. Sundry factory expenses of $6900 were recorded but not paid.

j. Factory overhead of $38,056 was applied to production.

k. Goods completed for $126,000 were transferred to finished goods.

l. Sales on account of $150,000 were recorded. They cost $96,000 to produce.

Explanation / Answer

JOURNAL ENTRIES:

S.NO. ACCOUNTS TITLE AND EXPLANATION DEBIT $ CREDIT $ a Direct Material Inventory 120000 Accounts Payable 120000 b Payroll Expenses 90000 FICA 6885 federal income tax 15750 Wages and salaries payable 67365 Work in process 45000 Factory overhead 9000 Administrative and Selling expenses 36000 Payroll Expenses 90000 c Factory Overhead 26250 Accounts Payable 26250 d Payroll Tax Expense 10395 state unemployment tax 2790 federal unemployment tax 720 FICA 6885 e Work in process inventory 60000 Factory Overhead 15000 Finished Goods 4500 Material Inventory 79500 f Finished Goods 900 Goods Returned 900 g Accounts Payable 74500 Wages and salaries payable 67365 Cash 141865 h Factory Overhead 1000 Depreciation - Factory machinery 1000 i Factory Expenses 6900 Accounts Payable 6900 j Work in Process 38056 Factory Overhead 38056 k Finished Goods inventory 126000 Work in Process 126000 l Accounts Receivable 150000 Revenue 150000 Cost of Goods Sold 96000 Finished Goods Inventory 96000

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