Question

ter 3 & 4 Test Exercises Name Thoa Tra Chopter 3 Naldo Office Supplies Compan Journalize the following bullets. (Worth 10 Points y manufactures ZEBO, a cleaning product, through two processes: blending and bottling. 1. In June, raw materials purchased were $38,500. 2. Direc 3. Payroll for the month was $30,000. 4. Direct Factory labor costs accumulated was Blending $22,000 and Bottling $7,000 t Materials used were Blending $30,500 and Bottling $7,000. Indirect materials were $1,000. Indirect labor accumulated was $1,000. 5. Manufacturing overhead costs were assigned using a PDR of 85%. 6. Factory utilities paid for the month were $6,500 7. The company transfers units completed at a cost of $29,000 in the Blending Department to the Bottling Department The Bottling Department transfers units completed at a cost of $17,000 to Finished Goods. 8. Accounts 2 4 5

Answer 1

Journal Entries:
S.no.	Accounts title and explanations				Debit $	Credit $
1	Raw material inventory				38500
	Accounts payable					38500
	(for raw material purchased on account)
2	Work in process-Blending				30500
	Work in process-Bottling				7000
	Manufactring Overheads				1000
	Raw material inventory					38500
	(for material used)
3	Manufacturing wages				30000
	Wages payable					30000
	(for wages incurred)
4	Work in process-Blending				22000
	Work in process-Bottling				7000
	Manufactring Overheads				1000
	Manufacturing wages					30000
	(for wags used in various processes)
5	Work in process-Blending			(22000*85%)	18700
	Work in process-Bottling			(7000*85%)	5950
	Manufacturing Overheads					24650
	(for overheads applied)
6	Manufacturing Overheads				6500
	Cash account					6500
	(for utilities bills paid)
7	work in process-Bottling				29000
	Work in process-Blending					29000
	(for goods transferred from bleding to bottling deptt)
8	Finished Goods inventory				17000
	Work in process-Bottling					17000
	(for finished goods transfrered from Bottling)