8200882776 OIL VPR PIPE 8200862773 PIPE VAPEUR CA The following information appl

Question

8200882776 OIL VPR PIPE 8200862773 PIPE VAPEUR CA The following information applies to the questions displayed below.) i Company produces large quantities of a standardized product. The following information is available for its roduction activities for January Raw materials Beginning inventory Rew materials purchased (on credit) Direct materials used Factory overhead incurred $ 22,000 Indirect materials used s 74,500 50,000 155,640 295,000 Indirect labor used 170,500) Other overhead costs 74,500) Total factory overhead incurred $ $ 72,000 Indirect materials used 280,140 Ending Inventory Factory overhead applied (140% of direct labor cost) Factory payroll Direct labor used $200100Total factory overheed applied $ 280140 Indirect labor used 50,000 Total payroll cost (paid in cash) $ 250,100 Additional information about units and costs of production activities follows Units Costs 2100 Beginning goods in process inventory Beginning goods in process inventory Started Direct materials Direct labor Factory overhead 2.500 3,100 3,900 34,000 6,000 Ending goods in process inventory Direct materials added Direct labor added Overhead applied (140% of direct labor) $ 9,500 70.500 200,100 280,140 Status of ending goods in process inventory Materials-Percent complete Labor and overhead-Percent complete 80 % 65 % Total costs $ 660,240 Ending goods in process inventory $ 79.695 20 MacBook Pro

Explanation / Answer

1(a) Journal Entry to record purchase of raw materials Date Account Title Debit Credit January 31 Raw material inventory           295,000 Accounts payable    295,000 1(b) Journal Entry to record direct materials usage Date Account Title Debit Credit January 31 Work in process           170,500 Raw materials inventory    170,500 1.(c) Journal Entry to record indirect materials usage Date Account Title Debit Credit January 31 Manufacturing overhead              74,500 Raw materials inventory      74,500 1(d) Journal Entry to record factory payroll cost Date Account Title Debit Credit January 31 Wages expenses           250,100 Cash    250,100 1(e) Journal Entry to record direct labor used in production Date Account Title Debit Credit January 31 Work in process           200,100 Wages expenses    200,100 1(f) Journal Entry to record indirect labor cost Date Account Title Debit Credit January 31 Manufacturing overhead              50,000 Wages expenses      50,000 1(g) Journal Entry to record other overhead cost Date Account Title Debit Credit January 31 Manufacturing overhead           155,640 Other accounts    155,640 1(h) Journal Entry to record overhead applied Date Account Title Debit Credit January 31 Work in process           280,140 Manufacturing overhead    280,140

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