How do I journalize the following transactions? Standard per Cake n/a Cost Item

Question

How do I journalize the following transactions?

Standard per Cake n/a Cost Item and Ingredient Conventional oven $6,000 (depreciated over 5 Refrigerator Baking pans, licenses Baking flour Eggs Sugar Baking soda Butter Raisins Others (currants, diced date, - nutmeg, molasses) Cash Register years on a SL basis No salvage value) S0 (provided by the landlord) SO (paid for by dad) $24 per 8 pounds bag S2 per dozen S15 per 25 pounds bag S6 per 14 pounds box S6.50 per 4 pounds S8 per 2 pounds 1 pound 4 eggs l pound 2 pound $30 for all 4 boxes per month $12 per month (rental for 2 ears Rum (alcohol) $12 per bottle qtr of bottle Utilities (includes gas, electric $50 per month and water) Mobile phone (business) S50 per month S500 per month Salary- Keisha Salary-nieces 1 person I cake Salary-aut Accountant Estimated MOH $100 per month S100 per month $4.00 per cake

Explanation / Answer

JOURNAL ENTRY Account title and explanation Debit Credit Inventory $600 Accounts payable $600 (200/8)bags*$24 (To record purchase of 200 pounds on account) Inventory $120 Accounts payable $120 (To record purchase of 200 pounds sugar on account) (200/25)*$15 Inventory $134 (67*$2) Accounts payable $134 (To record purchase of 67 dozef of eggs on account) Inventory $120 Accounts payable $120 (To record purchase of 20baking soda boxes on account) Inventory $325 (200/4)*$6.5 Accounts payable $325 (To record purchase of 200 pounds of butter on account) Inventory $400 (100/2)*$8 Accounts payable $400 (To record purchase of 100 pounds of raisins account) Inventory $600 (50*$12) Accounts payable $600 (To record purchase of 50 bottless of rum on account) Inventory $30 Accounts payable $30 (To record purchase of 4 boxes of other ingrdients on account) TOTAL $2,329 $2,329 Work in process $2,328.17 Loss on inventory (bad eggs) $0.83 (5/12)*$2 Inventory $2,329 (To record issue of direct material for production and loss on inventory(bad eggs)) Work in process $800 ($4*200) Manufacturing overhead $800 To record applied manufacturing overhead) Asset(Conventional oven) $6,000 Cash $6,000 (To record purchase of asset on cash) Depreciation expenses $100 Asset(Conventional oven) $100 (To record depreciation expenses) Work in process(Direct labor) $2,400 (500+300*8) Wages payable $2,400 (To record wages expenses) Manufacturing overhead $700 Salaries payable $700 (To record overhead expenses) Wages payable $2,400 Cash $2,400 (To record wages paid) Salaries payable $700 Cash $700 (To record salaries paid) Cash register rental expenses $144 Prepaid rent for cash register $144 Cash $288 ($12*24) (To record payment of cash register rental) Utilities expenses $600 Cash $600 (To record utilities expenses) Mobile phone $600 Cash $600 (To record mobile expenses) Finished goods $5,528.17 Work in process $5,528.17 (To record transfer of work in process to finished goods) Cost of goods sold $5,528.17 Finished goods $5,528.17 (To record cost of sales) Cash $10,000 Sales revenue $10,000 (To record sales revenue earned) Accounts payable $2,329 Cash $2,329 (To record payment to supplier)

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