Question

Josie Inc. has provided the following information for the year ended 20x8:

Josie Inc. has provided the following information for the year ended 20x8 a. Purchased raw materials on account for $121,800. b. Issued $114,400 in raw materials to production ($20,100 were not traceable to specific jobs). C. Incurred $129,519 in direct labor costs (14,391 hours) and $61,900 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $22,500 (paid in cash); depreciation on equipment $19,500: custodial supplies $6,700 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $73,800; sales commissions $87,200. f. Applied manufacturing overhead to jobs in process at a rate of $12 per direct labor hour. g. Completed jobs costing a total of $344,600. h. Sold jobs for $425,200 on account. The cost of the jobs was $341,900. i. Closed the Manufacturing Overhead account balance. Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.)

Answer 1

Journal entry

No	General Journal	Debit	Credit
a	Raw material	121800
	Account payable		121800
b	Work in process	114400
	Manufacturing overhead	20100
	Raw material		134500
c	Work in process	129519
	Manufacturing overhead	61900
	Cash		191419
d	Manufacturing overhead	48700
	Accumulated depreciation		19500
	Cash		29200
e	Advertising expense	73800
	Sales commissions	87200
	Cash		161000
f	Work in process (14391*12)	172692
	Manufacturing overhead		172692
g	Finished goods	344600
	Work in process		344600
h	Account receivable	425200
	Sales revenue		425200
	Cost of goods sold	341900
	Finished goods		341900
i	Manufacturing overhead	41992
	Cost of goods sold		41992