2 Quark Spy Equipment manufactures espionage equipment Journ

2. Quark Spy Equipment manufactures espionage equipment- Journallze the following events. 20 points total. Each question total points are in parentheses. Cyou may use t-accounts to help you, but only journal entries will be what is graded) a) (2 pts) Quark buys raw materials for $2,200 on account. b) (3 pts) Quark requisitions $2,700 materials for production, Of that, $1,600 is direct material and $1,100 is indirect material. (3 pts) Quark incurs $3,000 in direct labor and $1,400 in indirect labor. They pay out their workers in cash. c) (2 pts) They apply overhead as 100% of direct labor dollars (so $1 of DL-$1 of overhead) d) (2 pts) They finish $3,000 worth of products that are available to sell to their customers. e)

Solution

Sl. No. Accounts Titles and explanation Debit Credit a Raw Materials $     2,200 Accounts Payable $     2,200 b Work in process $     1,600 Manufacturing Overhead $     1,100 Raw Materials $     2,700 c Work in process $     3,000 Manufacturing Overhead $     1,400 Cash $     4,400 d Work in process $     3,000 Manufacturing Overhead $     3,000 e Finish goods $     3,000 Work in process $     3,000