Question

Exe! How Practice Journal Entries: (prepare these entries on the following page): Try not to look at the entries above and see if you can do them on your own. 1. Raw materials purchased on account, $210,000. 2. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials). 3. Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000. 4. Rent bill is received for factory building, $40,000. (credit Accounts Payable) 5. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable) 6. The company allocates manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October 7. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. 8. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost. < Send a chat o

Answer 1

No	General Journal	Debit	Credit
1	Raw Materials	210,000
	Accounts Payable		210,000
2	Work in Process	178,000
	Factory Overhead	12,000
	Raw Materials		190,000
3	Work in Process	90,000
	Factory Overhead	110,000
	Wages Payable		200,000
4	Factory Overhead	40,000
	Accounts Payable		40,000
5	Factory Overhead	70,000
	Accounts Payable		70,000
6	Work in Progress	240,000
	Factory Overhead		240,000
7	Finished Goods	520,000
	Work in Progress		520,000
8	Cost of Goods Sold	480,000
	Finished Goods		480,000
9	Accounts Receivable	600,000
	Sales Revenue		600,000
	(480,000 x 1.25)