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Amazon.com Home WINGSe University Google Pilot Apple Bing Googie Yahoe Rent Connect Ch 15 Connect Assignment 9 Prepare summary journal entries to record the following transactions for a company in its first month of operations a. Raw materials purchased on account, $94,000. b. Direct materials used in production, $40,500. Indirect materials used in production, $25,000. c. Paid cash for factory payroll, $70,000. Of this total, $50,000 is for direct labor and $20,000 is for indirect labor. points d. Paid cash for other actual overhead costs, $7.875 e. Applied overhead at the rate of 125% of direct labor cost. t. Transferred cost of jobs completed to finished goods, $74,000. g. Sold jobs on account for $105,000. The jobs had a cost of $74,000. View t Journal entry worksheet Record raw materials purchased on account Note: Enter debits before credits

Solution

Journal entries S.no. Accounts title and explanations Debit $ Credit $ a Raw material inventory Account Dr. 94,000      Accounts payable 94000 b Work in process inventory Account Dr. 40500 Factory Overheads Account Dr. 25000     Raw material inventory 65500 c. Factory Wages Account Dr. 70000      Cash account 70000 Work in process inventory Account Dr. 50000 Factory Overheads Account Dr. 20000      Factory Wages 70000 d. Factory Overheads Account Dr. 7875     Cash account 7875 e. Work in process inventory Account Dr. 62500     Factory overheads (50000*125%) 62500 f. Finished Goods inventory Account Dr. 74000        Work in process inventory 74000 g. Accounts receivable Dr. 105000       Sales revenue 105000 Cost of Goods sold Account Dr. 74000      Finished Goods inventory 74000