Record journal entries for the following: A) Ruiz Engineering Contractors incurr

Question

Record journal entries for the following:

A) Ruiz Engineering Contractors incurred service salaries and wages of $36,600 ($26,800 direct and $9,800 indirect) on an engineering project. The company applies overhead at a rate of 24% of direct labor.

B) Record the entries to assign service salaries and wages and to apply overhead.

C) At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $1,240, Garcia Company—credit $958.

D) Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.

E) During the current month, Standard Corporation completed Job 310 and Job 312. Job 310 cost $65,000 and Job 312 cost $45,000. Job 312 was sold on account for $85,000.

F) Journalize the entries for the completion of the two jobs and the sale of Job 312.

Explanation / Answer

Note: Manufacturing overhead underapplied = Manufacturing overhead incurred - manufacturing overhead applied = 9800 - 6432 = $3368

Date Account Title and Explanation Debit($) Credit ($) B) Work in Process 26800 Manufacturing Overhead 9800 Accounts Payable 36600 Service salaries and wages incurred and recorded) Work in Process 6432 Manufacturing Overhead 6432 (manufacturing overhead applied) C) Cost of goods sold 3368 Manufacturing overhead 6432 (manufactring overhead underapplied adjusted to cost of goods sold) F) Finished Goods -Job 310 65000 Finished Goods -Job 312 45000 Work In Process 110000 (completed and transfered to the finished goods accounts) Accounts receivable 85000 Sale - Job 312 85000 (sale of job 312 on account recorded) Cost of goods sold 45000 Finished goods-Job 312 45000

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