Question

3. Post the journal entries for the transactions to the following T-accounts, each of which started the month with a zero balance. Raw Materials Inventory Work in Process Inventory Endbal End bal Factory Overhead Finished Goods Inventory End.bal. 0 End.bal. Cost of Goods Sold End bal < Prev 304 or 4 5 Next >

Answer 1

Firstly we need to prepare a job cost sheet and journal entries which is shown as follows:-

Job Cost Sheet (Amounts in $)

	Job 136	Job 137	Job 138	Job 139	Job 140
Materials	50,000	33,000	19,400	23,000	6,400
Labor	12,100	10,800	38,100	39,400	3,000
Manufacturing Overheads (200% of direct labor)	24,200	21,600	76,200	78,800	6,000
Total cost	86,300	65,400	133,700	141,200	15,400

The required journal entries for the given transactions a to i are shown as follows:-

Journal Entries (Amounts in $)

No	Account Titles	Debit	Credit
a)	Raw Materials Inventory	200,000
	Accounts Payable		200,000
b)	Work in Process Inventory	131,800
	Factory Overhead	21,500
	Raw Materials Inventory		153,300
c)	Factory Overhead	15,250
	Cash		15,250
d)	Work in Process Inventory	103,400
	Factory Overhead	24,500
	Cash		127,900
e)	Work in Process Inventory (24,200+76,200+78,800) (Job 136, 138 and 139 factory overhead)	179,200
	Factory Overhead		179,200
f)	Finished Goods Inventory (Job 136, 138 and 139	361,200
	Work in Process Inventory (86,300+133,700+141,200)		361,200
g)	Accounts Receivable	550,000
	Sales		550,000
g)	Cost of goods sold (Job 136 and 138)	220,000
	Finished Goods Inventory (86,300+133,700)		220,000
h)	Factory Overhead (70,000+37,000+12,000+35,500)	154,500
	Accumulated Depreciation-Factory Building		70,000
	Accumulated Depreciation-Factory Equipment		37,000
	Prepaid Insurance		12,000
	Property Taxes Payable		35,500
i)	Work in Process Inventory (21,600+6,000)	27,600
	Factory Overhead (Job 137 and 140)		27,600

3) Posting to Given ledgers is shown as follows:- (Amounts in $)

Raw Materials Inventory					Work in Process Inventory
a.	200,000				b.	131,800
		153,300	b.		d.	103,400
End. bal.	46,700				e.	179,200
							361,200	f.
					i.	27,600
					End. bal.	80,800
Factory Overhead					Finished Goods Inventory
b.	21,500				f.	361,200
c.	15,250						220,000	g.
d.	24,500				End. bal.	141,200
		179,200	e.
h.	154,500
		27,600	i.
End. bal.	8,950
Cost of Goods Sold
g.	220,000
End. bal.	220,000