E19-24 Preparing job order costing journal entries Journalize the following tran

Question

E19-24 Preparing job order costing journal entries Journalize the following transactions for Marge's Sofas. Explanations are not recquiz! a. Incurred and paid Web site expenses, $2,000. b Incurred manufacturing wages of $15,000, 75% of which was direct labor and 25% of which was indirect labor. c. Purchased raw materials on account, $24,000. d. Used in production: direct materials, $7,500; indirect materials, $5,000. e. Recorded manufacturing overhead: depreciation on plant, $18,000, plant insurance (previously paid), $1,500; plant property tax, $3,900 (credit Property Tax Payable, Allocated manufacturing overhead to jobs, 200% of direct labor costs. g Completed production on jobs with costs of $40,000. h. Sold inventory on account, $22,000;, cost of goods sold, $18,000. i. Adjusted for overallocated or underallocated overhead

Explanation / Answer

no Accounting titles & Explanations Debit Credit a) Website expenses 2,000 cash 2,000 b) Work in process inventory 11250 Manufacturing overhead 3750 Factory wages payable 15,000 c) Raw materials inventory 24,000 Accounts payable 24,000 d) Work in process inventory 7,500 Manufacturing overhead 5,000 Raw materials inventory 12,500 e) Manufacturing overhead 23,400 Accumulated depreciation 18,000 prepaid insurance 1,500 property tax payable 3,900 f) Work in process inventory 22500 Manufacturing overhead 22,500 (11250*200%) g) Finished goods inventory 40,000 Work in process inventory 40,000 h) Accounts receivable 22,000 Sales 22,000 cost of goods sold 18,000 Finished goods inventory 18,000 i) cost of goods sold 9,650 Manufacturing overhead 9,650 Actual overhead indirect labor 3750 indirect materials 5,000 Accumulated depreciation 18,000 prepaid insurance 1,500 property tax payable 3,900 total actual overhead 32,150 Applied overhead 22,500 overhead under applied 9,650

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