Zippo Co. manufacturers its products in a continuous process involving two depar

Question

Zippo Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Prepare journal entries to record the following transactions related to production during (a) (b) Materials purchased on account, $200,000 Materials requisitioned by: Machining, $82,000 direct and $5,000 indirect materials; Assembly, $2,900 indirect materials (c) Direct labor used by Machining, $30,000; Assembly, $47,000 (d) Depreciation expenses: Machining, $6,500; Assembly, $2,300 (e Factory overhead applied: Machining, $8,700; Assembly, S12,200 () Machining Department transferred $69,300 to Assembly Department; Assembly Department transferred $65,400 to finished goods Sold goods on account, $80,000; cost of goods sold, $60,000 (g) Page GENERAL JOURNAL PostDebit Date 10 10 12 13 14 15 16 17 15 16 18 19

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Materials Inventory    200,000.00    Accounts Payable    200,000.00 b. WIP - Machining      82,000.00 FOH - Machining        5,000.00 FOH - Assembly        2,900.00    Materials Inventory      89,900.00 c. WIP - Machining      30,000.00 WIP - Assembly      47,000.00    Wages Payable      77,000.00 d. FOH - Machining        6,500.00 FOH - Assembly        2,300.00    Accumulated Depreciation        8,800.00 e. WIP - Machining        8,700.00 WIP - Assembly      12,200.00    FOH - Machining        8,700.00    FOH - Assembly      12,200.00 f-1. WIP - Assembly      69,300.00    WIP - Machining      69,300.00 f-2 Finished Goods      65,400.00    WIP - Assembly      65,400.00 g-1 Accounts Receivable      80,000.00    Sales      80,000.00 g-2 Cost of Goods Sold      60,000.00    Finished Goods      60,000.00 WIP - Machining WIP - Assembly Finished Goods b.    82,000.00    69,300.00 f-1. c.    47,000.00    65,400.00 f-2 f-2    65,400.00    60,000.00 g-2 c.    30,000.00 e.    12,200.00 e.      8,700.00 f-1.    69,300.00 End. Bal.    51,400.00 End. Bal.    63,100.00 End. Bal.      5,400.00 FOH - Machining FOH - Assembly b.      5,000.00      8,700.00 e. b.      2,900.00    12,200.00 e. d.      6,500.00      2,800.00 Underapplied d.      2,300.00 Overapplied      7,000.00 End. Bal.                   -   End. Bal.                   -   FOH - Machining - Underapplied - $2,800 FOH - Assembly - Overapplied - $7,000

Related Questions

Navigate

• Browse (All)
• Browse Z
• Subjects

---

---

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