Question

Prepare summary journal entries to record the following transactions for a company in its first month of operations

WA E- Www Check my Www Prepare summary journal entries to record the following transactions for a company in its first month of operations. This page ware Si a. Raw materials purchased on account, $84,000. b. Direct materials used in production, $38,000. Indirect materials used in production, $13,500. c. Paid cash for factory payroll, $45,000. Of this total, $31,000 is for direct labor and $14,000 is for indirec labor. d. Paid cash for other actual overhead costs, $7.250. e. Applied overhead at the rate of 120% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $58,500. 9. Sold jobs on account for $84,000. The jobs had a cost of $58,500. View transaction list Journal entry worksheet 23 Record raw materials purchased on account Note: i debats before credits Transaction General Journal Debit Credit View de Record entry < Prev 1 of 5 !!! Next >

Answer 1

	TR	General Journal				Debit	Credit
	a.	Raw materials inventory				84,000
		Accounts payable					84,000
	b(1)	Work in process inventory				38,000
		Raw materials inventory					38,000
	b(2)	Manufacturing overhead				13,500
		Work in process inventory					13,500
	c	work in process inventory				31,000
		Manufacturing overhead				14,000
		Cash					45,000
	d	Manufacturing overhead				7,250
		cash					7,250
	e	Work in process inventory				37200
		Manufacturing overhead					37200
	f	Finished goods inventory				58,500
		Work in process inventory					58,500
	g(1)	cost of goods sold				58,500
		finished goods inventory					58,500
	g(2)	Accounts receivable				84,000
		sales					84,000