Required: Make the entries to record the following: During one month, Cook Compa

Question

Required: Make the entries to record the following: During one month, Cook Company that uses a job order cost accounting system purchased raw materials for 550,000 cash. It then used $12,000 of the raw materials indirectly as factory supplies and used $42,000 as direct materials During one month, Faulkner Company that uses a job order cost accounting system had a monthly factory payroll of $120,000, paid in cash, of this amount, $28,000 was classified as indirect labor and die remainder as direct.

Explanation / Answer

Date

Account Title

Debit

Credit

(a)

Raw Material Inventory

50000

Cash

50000

Factory Overhead

12000

Raw Material Inventory

12000

Work-in-Progress Inventory

42000

Raw Material Inventory

42000

(b)

Factory Payroll

120000

Cash

120000

Goods in Process Inventory

92000

Factory Overhead

28000

Factory Payroll

120000

Date

Account Title

Debit

Credit

(a)

Raw Material Inventory

50000

Cash

50000

Factory Overhead

12000

Raw Material Inventory

12000

Work-in-Progress Inventory

42000

Raw Material Inventory

42000

(b)

Factory Payroll

120000

Cash

120000

Goods in Process Inventory

92000

Factory Overhead

28000

Factory Payroll

120000

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