Question

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing.

1. Purchased $55,200 in materials on account.
2. Issued $3,000 in supplies from the materials inventory to the production department.
3. Paid for the materials purchased in transaction (1).
4. Issued $27,000 in direct materials to the production department.
5. Incurred wage costs of $57,000, which were debited to Payroll, a temporary account. Of this amount, $15,000 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $42,000 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
6. Recognized $25,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $25,000 was debited to Payroll and credited to Fringe Benefits Payable.
7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs.
8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $33,900.
9. Applied overhead on the basis of 170 percent of direct labor costs.
10. Recognized depreciation of $18,750 on manufacturing property, plant, and equipment.

Required:

a. Prepare journal entries to record these transactions.

b. The balances that appeared in the accounts of Apex Manufacturing are shown as follows.

	Beginning			Ending
Materials Inventory	$	57,825			—
Work-in-Process Inventory		14,625			—
Finished Goods Inventory		63,750		$	52,800
Cost of Goods Sold		—			106,275

Prepare T-accounts to show the flow of costs during the period.

Answer 1

journal entries

S.no	particular	debit ($)	credit ($)
1	Raw material inventory	55200
	Accounts payable		55200
2	Manufacturing OVERHEAD	3000
	RAW MATERIAL inventory		3000
3	accounts payable	3000
	Cash		3000
4	work in process	27000
	RAW MATERIAL inventory		27000
5	payroll expenses	57000
	Withhold payroll tax		15000
	Cash		42000
6	Fringe benefit expenses	25000
	Fringe benefit payable		25000
7	work in process(57000×60%)	34200
	Manufacturing OVERHEAD(57000×30%)	17100
	Administrative(57000×10%)	5700
	Payroll expenses		57000
8	Manufacturing OVERHEAD	33900
	Cash		33900
9	work in process(34200+70%)	58140
	Manufacturing OVERHEAD		58140
10	Manufacturing OVERHEAD	18750
	Accumulated depreciation		18750

  RAW MATERIAL INVENTORY

Beginning balance	57825	work in process	27000
Accounts payable	55200	Manufacturing OVERHEAD	3000
		Balance	83025

  work in process

Beginning balance	14625	finished goods	95325
Raw material inventory	27000
Payroll expenses	34200
Manufacturing OVERHEAD	58140	balance	38640

  FINISHED GOODS

Beginning balance	63750	cost of goods sold	106275
Work in process	95325	balance	52800

  cost of goods sold

Finished goods	106275

  ALL THE BEST

   PLEASE DO SUPPORT US

ANY DOUBT PLEASE COMMENT BELOW

Thank you