Issuance of Materials On August 4, Rothchild Company purchased on account 12,000

Question

Issuance of Materials

On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit.

Journalize the entry on August 4 to record the purchase.

Journalize the entry on August 24 to record the requisition from the materials storeroom.

Direct Labor Costs

During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42.

Journalize the entry to record the flow of labor costs into production during August.

Factory Overhead Costs

During August, Rothchild Company incurred factory overhead costs as follows: indirect materials, $17,500; indirect labor, $22,000; utilities cost, $9,600; and factory depreciation, $17,500.

Journalize the entry to record the factory overhead incurred during August.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Explanation / Answer

04-Aug Materials 168000 (12000*14)             Accounts payable 168000 24-Aug Work in progress 126800 (5000*8+6200*14)             Materials 126800 Work in progress 186200 (3500*25+4200*23.5)             Wages payable 186200 Factory overheads 66600              Materials 17500              Wages payable 22000              Utilities payable 9600             Accumulated depreciation factory 17500

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.