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Journalize the September transactions. Sept 1 Purchased $970,000 of raw material

ID: 2443189 • Letter: J

Question

Journalize the September transactions.

Sept 1 Purchased $970,000 of raw material on account

Sept 4 Issued $950,000 of raw material as follows: Job #75, $144,800;
Job #78, $126,300; Job #82, $496,100; Job #86, $156,200; and indirect
material, $26,600

Sept 15 Prepared and paid the $378,500 factory payroll for Sept. 1-15.
Analysis of this payroll showed the following information:
Job #75 4,830 hours $42,300
Job #78 13,160 hours 133,600
Job #82 10,150 hours 101,500
Job #86 5,140 hours 55,400
Indirect wages 45,700

Sept 15 On each payroll date, Vital Ventures applies manufacturing overhead
to jobs at a rate of $8.50 per direct labor hour.

Sept 15 Job #75 was completed, accepted by the customer, and billed at a
selling price of cost plus 25 percent. Selling prices are rounded to
the nearest whole dollar.

Sept 20 Paid the following monthly factory bills: utilities, $19,800; rent, $35,300
and accounts payable (accured in August), $98,400.

Sept 24 Purchased raw material on account, $312,000

Sept 30 Recorded additional factory overhead costs as follows: depreciation,
$104,500; expired prepaid insurance, $32,700; and accrued taxes and licenses, $16,200

Sept 30 Recorded and paid the factory payroll for Sept. 16-30 of $357,200.
Analysis of the payroll follows:
Job #78 8,940 hours $88,700
Job #82 13,650 hours 114,200
Job #86 9,980 hours 121,800
Indirect wages 32,500

Sept 30 Applied overhead for the second half of the month to jobs.




Explanation / Answer

Sept 1      Materials     (Debit)             970,000

                        Accounts Payable       (Credit)                        970,000

Sept 4 Job # 75           (D)                   144,800    

           Job # 78           (D)                   126,300

            Job # 82            (D)                             496,100

           Job # 86         (D)                                156,200

            Misc. Materials            (D)          26,600

                        Materials         (C)                               950,000

Sept 15 Job # 75 Wages Pay (D)       42,300    

           Job # 78 Wages Pay    (D)       133,600

            Job # 82 Wages Pay       (D)          101,500

           Job # 86 Wages Pay       (D)            55,400

            Misc. Wages Pay         (D)        45,700

                        Cash                            (Cr)                  378,500

Sept 15 Account Receivable (D)       233,875

                        Job #75 Wages Pay     (Cr)                  42,300

                        Job #75 Materials        (Cr)                  144,800

                        Revenue- Job # 75                  (Cr)      46,775

Sept 20   Utilities Expense      (D)       19,800

               Rent Expense           (D)       35,300

               Accounts Pay           (D)       98,400

                        Cash                (Cr)                              153,500

Sept 24 Materials                   (D)       312,000

                        Accounts Pay (Cr)                              312,000

Sept 30 Job # 78 Wages Pay (D)       88,700

            Job # 82 Wages Pay        (D)         114,200

           Job # 86 Wages Pay          (D)         121,800

            Misc. Wages Pay         (D)        32,500

                        Cash                            (Cr)                  357,200