Findlay company uses a job-order costing system. The following data relate to th
ID: 2459957 • Letter: F
Question
Findlay company uses a job-order costing system. The following data relate to the month of October, the first month of the company's fiscal year:
10/1 Raw materials purchased on account, $210,000
10/7 Raw materials issued to production, $190,000. (80% direct and 20% indirect)
10/8 Direct labor cost issued to production, $49,000; and indirect labor cost incurred $21,000
10/22 The company applies manufacturing overhead cost to production on the basis of $4.00 per machine hour. There were 75,000 machine hours recorded for October.
10/25 Production orders costing $510,000 according to their job-cost sheets were completed during October and transferred to Finished Goods.
10/29 Sales were made to customers. The cost of goods sold amounted to $370,000 of goods from the warehouse.
Prepare journal entries to record the information given above.
Explanation / Answer
Journal Entries:
Date Accounts Titles and explanation Debit $ Credit $ 10/1 Raw Materials 210000 Accounts Payable 210000 10/7 Work in Process 152000 Manufacturing overhead 38000 Raw Materials 190000 10/8 Work in Process 49000 Manufacturing overhead 21000 Labor Payroll 70000 10/22 Work in Process 300000 Manufacturing overhead 300000 10/25 Finished Goods Inventory 510000 Work in Process 510000 10/29 Cost of Goods Sold 370000 Finished Goods Inventory 370000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.