Purchased raw materials on account for $121,000. Issued $114,200 in raw material
ID: 2429987 • Letter: P
Question
Purchased raw materials on account for $121,000.
Issued $114,200 in raw materials to production ($20,600 were not traceable to specific jobs).
Incurred $100,625 in direct labor costs (14,375 hours) and $61,600 in supervision costs (paid in cash).
Incurred the following additional manufacturing overhead costs: factory lease $23,400 (paid in cash); depreciation on equipment $19,900; custodial supplies $6,200 (paid in cash).
Incurred the following nonmanufacturing costs, both paid in cash: advertising $74,400; sales commissions $86,000.
Applied manufacturing overhead to jobs in process at a rate of $11 per direct labor hour.
Completed jobs costing a total of $344,900.
Sold jobs for $426,000 on account. The cost of the jobs was $341,600.
Closed the Manufacturing Overhead account balance.
Josie Inc. has provided the following information for 2015: a. Purchased raw materials on account for $121,000. b. Issued $114,200 in raw materials to production ($20,600 were not traceable to specific jobs) c. Incurred $100,625 in direct labor costs (14,375 hours) and $61,600 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $23,400 (paid in cash); depreciation on equipment $19,900; custodial supplies $6,200 (paid in cash) e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $74,400; sales commissions $86,000 f. Applied manufacturing overhead to jobs in process at a rate of $11 per direct labor hour. g. Completed jobs costing a total of $344,900 h. Sold jobs for $426,000 on account. The cost of the jobs was $341,600. i. Closed the Manufacturing Overhead account balance. Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 123 4 56 78 9 10 Record the purchase of raw materials on account. Note: Enter debits before credits. Event General Journal DebitCredit Record entry Clear entry View general journal Check my workExplanation / Answer
Journal Entries in the books of Josie Inc. Date Account's tittle Debit $ Credit $ 2015 a Material inventory 121,000 Accounts payable 121,000 b Work-in process ( job) 93,600 manufacturing overhead ( non traceable ) 20,600 Material inventory 114,200 c Direct labor cost 100,625 Supervision cost 61,600 Cash 162,225 Work-in process ( job) 100,625 Direct labor cost 100,625 manufacturing overhead 61,600 Supervision cost 61,600 d Factory lease 23,400 Custodial supplies 6,200 Cash 29,600 Deoreciation on equipment 19,900 Accumulated depreciation-Equipment 19,900 manufacturing overhead 49,500 Factory lease 23,400 Custodial supplies 6,200 Deoreciation on equipment 19,900 e Advertising expenses 74,400 Sales commission 86,000 Cash 160,400 f Work-in process ( job) ( 14,375 hours x $ 11) 158,125 manufacturing overhead 158,125 ( applied manufacturing overhead ) g Finished goods ( job) 344,900 Work-in process ( job) 344,900 h Accounts receivable 426,000 Sales revenue 426,000 Cost of goods sold 341,600 Finished goods ( job) 341,600 i Manufacturing overhead ( $ 158,125 - $ 131,700 ) 26,425 Cost of goods sold 26,425 ( Adjustments of over applied manufacturing overhead against cost of goods sold)
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