Direct labor cost Manufacturing overhead app Raw materials i

Direct labor cost Manufacturing overhead app Raw materials inventory Work in process inventory Finished goods inventory Complete the Schedule of Cost of Goods Sold. 2) The Simkins Corporation uses a job-order costing system. The following activities took pla during the month of May: a. Raw materials purchased b. Raw materials (all direct) used in production c. Salaries and wages costs: $40,000 $35,000 $60,000 S30,000 $25,000 $15,000 S50,000 $80,000 Direct labor cost Indirect labor cost Sales salaries d. Factory utility costs e. Depreciation on factory equipment f Advertising expense Manufacturing overhead is applied at the predetermined g. rate of I 50% of direct labor cost. h. Cost of Goods Manufactured for the month i. Cost of Goods Sold for the month $180,000 $150,000 Required Prepare journal entries to record the information given above. Key your entries by the letter through i. over

Solution

Journal entries Sr.No. Account Titles Debit Credit a Raw Material Inventory $40,000 Accounts Payable $40,000 b Work in process Inventory $35,000 Raw Material Inventory $35,000 c Work in process Inventory $60,000 Factory Overheads $30,000 Selling and administrative expenses $25,000 Wages Payable $90,000 Salaries Payable $25,000 d Factory Overheads $15,000 Expense Payable $15,000 e Factory Overheads $50,000 Accumulated Depreciation- Factory Equipment $50,000 f Selling and administrative expenses $80,000 Expense Payable $80,000 g Work in process Inventory $90,000 Factory Overheads $90,000 h Finished Goods Inventory $180,000 Work in process Inventory $180,000 i Cost of goods sold $150,000 Finished Goods Inventory $150,000