1. Prepare journal entries to record items (a) through (f) above [ignore item (g

Question

1. Prepare journal entries to record items (a) through (f) above [ignore item (g) for the moment]. 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T- accounts 3. Prepare a journal entry for item (g) above. 4. If 10,300 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be included in cost of goods sold for February? Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3Rered 4 Prepare a journal entry for item (9) above. (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 Record the entry to transfer from WIP to Finished goods. Note: Enter debits before credits. Transaction General Journal Debit Credit g.

Explanation / Answer

Part-1 Journal Entries Event Account Debit Credit a RawMaterial 316000 Accounts Payable 316000 (Raw material purchased on account) b Work in process 252000*80% 201600 Manufacturing Overhead 252000*20% 50400 RawMaterial 252000 (Direct and indirect matrial used in production) c Work in process (2/3 of 171000) 57000 Manufacturing Overhead (2/3 of 171000) 114000 Salaries and Wages Payable 171000 (Direct and indirect Labor cost incurred) d Manufacturing Overhead 63000 Accumulated Depreciation 63000 (Depreciation Recorded) e Manufacturing Overhead 84600 Accounts Payable 84600 (Other manufacturing overhead recorded) f Underapplied Manufacturing Overheads 4950 Manufacturing Overheads 4950 (Booked under applied Manufacturing Overheads) f Cost of goods sold 4950 Underapplied Manufacturing Overheads 4950 (Closed Underapplied Manufacturing Overheads to COGS) Working: Predetermined Rate of Overhead 4252500/567000 7.5 Applied Manufacturing Overhead 40940*7.5 307050 Actual Manufacturing Overhead -Indirect Material 50400 -Indirect Labor 114000 -Depreciation 63000 -Other Manufacturing Overhead 84600 312000 Under Applied Overheads 312000-307050 4950 Part-2 T-Accounts Manufacturing Overheads Work in Process Indirect Mat 50400 4950 Underapplied Direct Material 201600 Indirect Labor 114000 Direct Labor 57000 Depreciation 63000 Other Overhead 84600 Ending Balance 307050 Ending Balance 258600 Part-3 Journal Entry Event Account Debit Credit g Finished Goods (201600+57000+307050) 565650 Work in Process 565650 (Moved to Finished Goods Units 12500) Part-4 Cost Per unit 565650/12500 45.252 Cost of 10300 Units (10300*45.252) 466096 Add: Under Applied Overhead 4950 Cost included in COGS 471046

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