QUESTION 23 Not yet answered Points out of 40.00 P Flag question Job Cost Journa

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QUESTION 23 Not yet answered Points out of 40.00 P Flag question Job Cost Journal Entries Prior to the beginning of 2016, Stapleton Company estimated that it would incur $153,000 of manufacturing overhead cost during 2016, using 17,000 direct labor hours to produce the desired volume of goods. On January 1, 2016, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $48,000, $-0, and $87,000, respectively. Required Prepare a. Purchased materials on account, $316,000 general journal entries to record the following for 2016: Descriptiorn Debit Credit b. Of the total dollar value of materials used, $284,000 represented direct material and $35,000 indirect material. Description Debit Credit Work in process inventory

Explanation / Answer

In the books of Stapleton Company
Journal

Working Note -

Q no. Particulars Debit in $ Credit in $ a Materials Inventory $ 316,000.00 Accounts Payables $ 316,000.00 b Work In Process Inventory $ 284,000.00 Manufacturing Overhead $    35,000.00 Materials Inventory $ 319,000.00 c Determind Total Factory Labour = $189000 [Direct Labour = 15800 x $10.5 = $165900 Indirect Labour = 2200 x $10.5 = $23100] d Work in Progress Inventory $ 165,900.00 Manufacturing Overhead $    23,100.00 Factory Labour $ 189,000.00 e Work in Progress Inventory $ 142,200.00 Manufacturing Overhead $ 142,200.00 (153000/17000) x 15800 f Manufacturing Overhead $    83,000.00 Accounts Payables $    83,000.00 g Finished goods inventory $ 535,100.00 Work in Process Inventory $ 535,100.00 Cost of goods Sold $ 550,300.00 Finished Goods Inventory $ 550,300.00 h Manufacturing Overhead $      1,100.00 Cost of goods sold $      1,100.00

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