Question

record journal entries for the following transactions

23) Record journal entries for the following transactions. a) Issued S8,000 of direct materials to production in the Carving Department. b) Manufacturing labor in the Carving Department amounted to $7,200. c) Allocate manufacturing labor to the appropriate accounts: 90% direct labor; 10% indirect labor. The pay rate for all direct labor is $20 per hour. d) Allocated manufactured overhead in the Carving Department at $15 direct labor per hour Transferred $8,000 of product from the Carving Department to finished goods e) inventory.

Answer 1

Answer with working is given below

Journal Debit Credit Work in process- Carving Department To Material Account (Being issue of material to work in process) $8,000 a) $8,000 Work in process- Carving Department $7,200 b) To Direct Labor |(Being direct labor recorded) $7,200 Direct Labor $7,200 c) Indirect Labor To Wages payable (Being Labor Cost incurred) $800 $8,000 Manufacturing Overhead- Carving Department $800 c) To Indirect Labor (Being indirect labor recorded) $800 Work in process- Carving Department $5,400 d) To Manufacturing Overhead applied (Being Manufacutirng Overhead applied) $5,400 Finished Goods e) $8,000 To Work in process- Carving Department (Being Work in process of Carving department transferred to Finished Goods Dept) $8,000 working note Direct Labor cost hourly rate Direct Labor hours $7,200.00 $20.00 360.00 Manufacutred Overhead allocated ( $15 per hour)| $5,400.00 Direct Labor Indirect Labor $7,200 $800 90% 10%