Prepare summary journal entries to record the following transactions for a company in its first month of operations. Raw materials purchased on account, $108,000. Direct materials used in production, $44,000. Indirect materials used in production, $19,800. Paid cash for factory payroll, $70,000. Of this total, $46,000 is for direct labor and $24,000 is for indirect labor. Paid cash for other actual overhead costs, $8,750. Applied overhead at the rate of 120% of direct labor cost. Transferred cost of jobs completed to finished goods, $86,000. Sold jobs on account for $123,000. The jobs had a cost of $86,000.
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Ответ:
Journal Entries
Raw Materials $108,000 (debit)
Accounts Payable $108,000 (credit)
Being purchase of Raw Materials on Account
Work In Process ; Direct Material Cost $44,000 (debit)
Work In Process ; Indirect Material Cost $19,800 (debit)
Raw Materials $63,800 (credit)
Being Raw Materials requisitioned for Production
Work In Process ; Direct Wages and Salaries $46,000 (debit)
Work In Process ; Indirect Wages and Salaries $24,000 (debit)
Cash $70,000 (credit)
Being Wages and Salaries Paid in Cash
Overheads $8,750 (debit)
Cash $8,750 (credit)
Being Cash paid for Overheads
Work In Process $55,200 (debit)
Overheads $55,200 (credit)
Being Overheads Applied to Work In Process at 120% of direct labor cost
Finished Goods $86,000 (debit)
Work In Process $86,000 (credit)
Being Goods transferred to Finished Goods
Trade Receivable $123,000 (debit)
Revenue $123,000 (credit)
Being Sale of Jobs on Account
Cost of Sales $86,000 (debit)
Finished Goods $86,000 (credit)
Being Cost of Jobs Sold
Explanation:
Costs incurred for Manufacturing are accumulated In the Work In Process Account.
This account is de-recognized as the goods are transferred to Finished Goods.
The Finished Goods Inventory Account is then de-recognised as the Jobs are sold to the Customers.
Ответ:
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